AT&T's Doesn't Feel Sting of VZW iPhone

The iPhone had been driving strong wireless growth at AT&T for the past several quarters. So when the Verizon iPhone hit many financial analysts assumed there would be widespread defections and a corresponding slowing of wireless growth. Not so according to Q1 2011 AT&T revenues released this morning.

The AT&T saw a 39% increase in Q1 profit. Revenues rose to $31.2 billion in the first quarter, up $700 million vs. a year ago. Here are some additional earnings highlights:

  • 10.2 percent growth in wireless revenues, with an 8.6 percent increase in wireless service revenues 
  • Best-ever first-quarter increase in total wireless subscribers, up 2.0 million to reach 97.5 million subscribers in service, with gains in every category
  • Best-ever first-quarter smartphone sales of more than 5.5 million
  • iPhone activations increased nearly 1 million year over year to 3.6 million, with 23 percent of subscribers new to AT&T; iPhone subscriber churn unchanged year over year
  • Best-ever first-quarter connected device net adds of 1.3 million
  • 23.9 percent growth in wireless data revenues, up almost $1 billion versus the year-earlier quarter

As indicated by the numbers the iPhone remains popular at AT&T. The company reported that 3.6 million iPhones were activated in Q1 with almost 25% of those activations coming from new customers. That compared with 2.7 million iPhones activated a year earlier. 

Rougly 40% of the 5.5 million smartphone sales (AT&T's third best quarter for smartphone sales) were made up of non-iPhone devices. The carrier now has 97.5 million wireless subscribers. 

 Screen shot 2011-04-20 at 9.22.29 AM

See also: AT&T Interactive Planning Local-Mobile SDK