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AT&T announces Q3 2012 results, iPhone still dominate smartphone sales

AT&T announces Q3 2012 results, 4.7 million iPhones activated

AT&T has released their third quarter 2012 results, and out of 6.1 million smartphones sold, 4.7 million of those were iPhones, and 18% of those were for customers new to the network. That's especially interesting given that the iPhone 5 only launched at the tail end of the quarter. Here's what AT&T CEO Randal Stephenson had to say:

“We had another impressive quarter with strong earnings growth, record cash flows and solid returns to shareholders through dividends and share buybacks. In wireless, we had another excellent smartphone quarter, penetration of usage-based mobile data plans continues to climb, and our 4G LTE network build is ahead of schedule. And in wireline, our IP network continues to deliver strong gains in U-verse high speed Internet connections, which helped drive an almost 10 percent increase in broadband data ARPU.

“Our strong performance allows us to increase our free cash flow guidance to $18 billion or higher this year, exceeding our previous outlook by $2 billion.”

Also interesting (emphasis mine):

AT&T posted a net increase in total wireless subscribers of 678,000 in the third quarter to reach 105.9 million in service. This included gains in every customer category. Subscriber additions for the quarter included postpaid net adds of 151,000. Postpaid results were impacted by iPhone 5 inventory constraints which resulted in the vast majority of third-quarter iPhone sales going to existing customers, where there was considerable pent-up demand. Prepaid net adds were 77,000, connected device net adds were 313,000 and reseller net adds were 137,000.

Android and Windows Phone sales were also up (I'm guessing mostly Android), and smartphone sales in general were 1.4 million hire than previous quarters. Apple will announce their results tomorrow. Hit the link below for the full results, and here's a video from Ralph de la Vega that they swear wasn't made by the folks at SNL...

Source: AT&T

Rene Ritchie

Editor-in-Chief of iMore, co-host of Iterate, Debug, Review, The TV Show, Vector, ZEN & TECH, and MacBreak Weekly podcasts. Cook, grappler, photon wrangler. Follow him on Twitter and Google+.

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AT&T announces Q3 2012 results, iPhone still dominate smartphone sales

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Attention Tim Cook: "Postpaid results were impacted by iPhone 5 inventory constraints..."

Inventory constraints = lost sales opportunities = opportunity cost.

If Apple were able to meet iPhone demand, their share at AT&T (and presumably all other carriers) would have been higher. Short term fix: increase production capacity by adding more assembly lines. Longer-term fix: simplify iPhone design and manufacturing process.