We now have an idea of how AT&T performs now that the iPhone hit Verizon, as the carrier has added 2 million wireless subscribers, iPhone activations increased, profits were up 39% and it sold more smartphones in its first quarter than ever.
AT&T had consolidated revenues of $31.2 billion for the quarter including wireless, home services and enterprise offerings. It saw a 10.2 percent growth in wireless revenues and it now has 97.5 million subscribers.
“Mobile broadband networks are driving unprecedented growth and innovation, and AT&T is playing a leading role in bringing these benefits to customers,” AT&T CEO Randall Stephenson said in a prepared statement. “That’s why our agreement to acquire T-Mobile USA, which we announced in March, is so important. Combined, the two companies’ spectrum and network assets will allow us to simultaneously address spectrum issues created by this increased demand and improve customers’ network experience as volumes continue to grow.”
AT&T continues to make a ton of cash each quarter and that’s why it has the $36 billion it needs to acquire T-Mobile. If that deal goes through (and there will be much governmental scrutiny), it will make the combined entity the largest carrier by a far margin with more than 120 million users.
Interestingly enough, the carrier also saw a growth in its “branded computing subscribers” which includes tablets like the iPad 3G and aircards. This included 421,000 new users in the quarter for a total of 3.4 million.
Look for this last area to be a major growth category moving forward, as we have plenty of tablets that will be hitting the shelves over the next few months. We can also look for things like connected power meters and other devices.