Apple iPhone sales boost AT&T’s third-quarter earnings

AT&T Inc. posted 4 percent total revenue growth during the third quarter of 2008. The company’s results were driven by increases in its wireless, U-verse and Internet Protocol data revenues.

Dallas-based AT&T (NYSE: T) reported net income of $3.2 billion, or 55 cents per diluted share, on revenues of $31.3 billion for the quarter ended Sept. 30, 2008. This compares to net income of $3.1 billion, or 50 cents per diluted share, on revenues of $30.1 billion for the third quarter of 2007.

The company’s wireless revenues experienced a significant boost from sales of the Apple iPhone 3G. AT&T is the exclusive wireless carrier of the iPhone. Wireless activations of the new Apple iPhone 3G — which hit the market on July 11 — totaled 2.4 million in the third quarter. About 40 percent of these customers were new AT&T wireless customers. The iPhone is marketed by Cupertino, Calif.-based Apple Inc. (NASDAQ: AAPL).

AT&T also experienced a 2 million net gain in total wireless subscribers in the quarter, bringing its total wireless customers to 74.9 million. The company also experienced a 1.7 million net gain in retail postpaid wireless subscribers, which is up nearly 40 percent over the third quarter of 2007.

"The apple i phone is really a hot stuff in the market."

In all, total wireless revenues grew 15.4 percent for the quarter.

AT&T’s consumer Internet Protocol data revenues were up 19 percent over the third quarter of 2007, reflecting growth in U-verse TV and broadband services. AT&T has the ability to reach 14 million living units for U-verse TV. The company is on track to reach more than 1 million subscribers by the end of this year.

The company experienced a 4.3 percent increase in average revenue per household. Households were spending $61.97 on average on U-verse in the third quarter, compared to $59.43 spent per household in the third quarter of 2007.

AT&T has 5,300 employees in San Antonio.