iPhone 3G Sales Ringing Twice as Nice for ATandT

iPhone 3G sales are moving at nearly twice the pace of last year's introduction of the original iPhone, AT&T reported July 23. In nearly two weeks since Apple and AT&T—the U.S. carrier for the iPhone—rolled out the latest model, units sold have hit 712,000.

"In the days following our exclusive U.S. launch of this new device, powered by the nation's fastest [third-generation] wireless network, customer response has been everything we had anticipated and more," said AT&T CEO Randall Stephenson in a statement. "This strengthens our wireless business, and it reinforces our positive view of the opportunities ahead for AT&T and the industry."

Those sales, though, won't be officially counted for AT&T until the third quarter. For the second quarter, the nation's largest telecom carrier reported growth in both its net income and revenue, driven primarily by increased mobile sales. AT&T said its mobile revenue jumped 15.8 percent from a year ago to $12 billion in the second quarter.

The company also reported that wireless revenues were up 52 percent, to $2.5 billion, from a year ago, while text messaging volumes on AT&T's network tripled from the second quarter of 2007.

In a continuing trend, AT&T also reported wire-line revenues slumped 8.3 percent from last year to $9.5 billion.

"AT&T is all about deploying and enhancing premier networks and products to deliver this world to both business and consumers," Stephenson said. "The Apple iPhone 3G is a dramatic example of this transformation."

AT&T's consolidated revenues totaled $30.9 billion, up 4.7 percent from a year ago, and up 3.6 percent compared with second-quarter 2007 pro forma revenues, which exclude merger-related accounting impacts on directory revenues.

Compared with results for the year-earlier quarter, AT&T's reported operating expenses for the second quarter of 2008 were $24.3 billion, down from $24.5 billion; operating income was $6.6 billion, up from $4.9 billion; and operating income margin was 21.3 percent, up from 16.8 percent.

"As we generate sound financial results, AT&T also has taken the lead to innovate and create great solutions for customers," Stephenson said. "Mobility, broadband connectivity and integrated services that encompass voice, data and video are driving a new world of communications."