AT&T activates 7.6M iPhones in Q4, but reports $6.7B net loss
ATT saw its best wireless sales ever in the fourth quarter, but the aftermath of its failed T-Mobile acquisition was a big hit on profits.
The carrier reported a net loss of $6.7 billion on revenue of $32.5 billion (up 3.6 percent from last year). That’s mostly due to the $4 billion break-up fee ATT had to pay to T-Mobile following the failed merger, as well as losses in the company’s directory business.
But despite the profit woes, ATT still saw success in its wireless business, with record sales for iPhone and Android smartphones. ATT sold 9.4 million smartphones in Q4, up 50 percent from its previous record. The company activated 7.6 million iPhones (it gloats that’s 3.3 million more than Verizon), and Android sales were double what they were last year. Wireless revenue was up 10 percent.
I’d attribute much of ATT’s wireless sales to the launch of the iPhone 4S in October, as well as the typical rise in sales during the holiday season.
The carrier says it added 2.5 million total wireless subscribers during the quarter, and 82 percent of new postpaid accounts bought smartphones. Of the company’s 69.3 million postpaid subscribers, 56.8 percent had smartphones.
For the entire year, ATT says it sold 17.5 million iPhones, compared to Verizon’s 10.8 million. Wireless revenue accounted for 50 percent of the company’s overall revenue in 2011.
The company now has 5.1 million subscribers for branded computing devices, which includes on-contract tablets, hotspots, and the like. 571,000 of those were sold during the fourth quarter, up 70 percent from last year.
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Article source: http://venturebeat.com/2012/01/26/att-activates-7-6m-iphones-in-q4-but-reports-6-7b-net-loss/
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