AT&T activates 3.2 million iPhones in quarter

Telecom giant posts a better-than-expected third quarter, with wireless powering sales and the iPhone marking its largest quarterly activation total to date.

AT&T's bet on the iPhone continues to work well. The company reported Thursday a better-than-expected third quarter with 3.2 million iPhone activations--the largest quarterly activation total to date.

The telecom giant had net income of $3.2 billion, or 54 cents a share. Revenue came in at $30.9 billion, down from $31.3 billion a year ago. Wall Street was expecting earnings of 50 cents a share.

If you're an AT&T customer, you may be more interested in the update on its infrastructure improvements. The company said dropped calls in September declined by 12 percent, compared with a year ago.

Total churn for the quarter was 1.43 percent, down from 1.69 percent a year ago.

As usual, AT&T was powered by its wireless unit, which represents 44 percent of total sales. Wireless data revenue was $3.6 billion, up 33.6 percent from a year ago.

Read more of "AT&T cuts churn rate; Activates 3.2 million iPhones; Touts network upgrades" at ZDNet's Between the Lines.

About the author

    Larry Dignan is editor in chief of ZDNet and editorial director of CNET's TechRepublic. He has covered the technology and financial-services industries since 1995.


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