AT&T's Share of the IPhone Pie: 2.4 Million Activations
Apple is not the only one whose earnings have been buoyed by strong iPhone consumer adoption. AT&T reported its third fiscal quarter earnings on Wednesday, recording consolidated revenues of $31.3 billion, up 4.0 percent year over year. AT&T is Apple's cell service partner in the United States.
AT&T said that consolidated revenue growth was driven by 15.4 percent growth in wireless revenues. The company's adjusted earnings were $0.67 per diluted share, with $0.10 of that "pressure generated by strong performance from the Apple iPhone 3G initiative."
AT&T said that 2.4 million iPhone 3G devices were activated in the quarter, and that about 40 percent of those wireless customers getting an iPhone were new to AT&T.
What's more, the quality of the revenue generated from iPhone users is better, according to AT&T. The company reports that Average Revenue Per User (ARPU), a financial calculation used to determine the overall value of a product, is "significantly higher" among iPhone customers, and that churn -- a term used to describe the number of customers who discontinue their service -- is lower among iPhone users.
"Based on third-quarter customer response, AT&T is optimistic regarding continued strong iPhone 3G activations and is confident in the long-term value created by this investment in acquiring high-value, data-centric wireless subscribers," said the company in a statement.