updated 10:31 am EDT, Wed October 24, 2012
Lower profit despite high sales, more subscribers
AT&T has sold over six million smartphones, 4.7 million of which are iPhones, according to its newly released quarterly results. The company received a net increase of 678,000 customers in the quarter, with the contract smartphone customer base now sitting at 44.5 million, up 1.4 million from the last quarter.
Despite the increase in customers, turnover has gown down by $0.1 billion to $31.5 billion, though the net profit dropped further still. Down from the $6.8 billion in Q2, the $3.6 billion in net profit could have been higher if the company did not buy back 101 million shares from shareholders at a cost of $3.8 billion. The company's expansion of its LTE network could also be a contributing factor to the lower net profit.
Subscribers of its U-verse service have also gone up to a total of 7.4 million customers. U-verse TV subscribers rose by almost 200,000, while the net gain in high speed Internet subscribers was 613,000. Wireline revenues have accelerated, now up 2 percent compared to the year-end period, making its strongest growth in more than four years.