AT&T Announces 'Verizon-Proof' Earnings, iPhone Activations
AT&T announced its quarterly earnings this morning and some are calling the numbers Verizon-proof, at least with regard to the carrier's strong iPhone activation numbers during the first quarter of 2011. Despite the arrival of the iPhone 4 on the Verizon network in the US and months of heated rumors leading up to that eventuality, AT&T activated 3.6 million iPhones during Q1, a full 33% increase from Q1 2010.
"We delivered another robust mobile broadband growth quarter for a very solid start to the year," boasted Randall Stephenson, the carrier's chairman and chief executive officer. "We posted double-digit wireless revenue growth, and we set new first-quarter records in total net adds, connected device net adds and smartphone sales. Growth in tablets and other branded computing subscribers also continues to be strong."
But, if truth be told, Stephenson's reference to "growth in tablets" is worth another look, as tablet activations actually grew at a much smaller pace than before, with just 322,000 tablet activations. Still, AT&T says it lured in a total of 62,000 new wireless contract users in the quarter. AT&T's total subscriber base now sits at 97.5 million, a full 12% increase over the last twelve months.
Despite the increased competition in the smartphone and tablet marketplaces and the threat of Verizon eviscerating AT&T's iPhone user base in the US, AT&T proved stronger than many anticipated today with its Q1 earnings - a positive sign for shareholders in the quarter ahead.