AT&T Achieves Growth with iPhone 17 Promotions in Q3

In the third quarter, AT&T exceeded expectations by onboarding more wireless subscribers than predicted, thanks to aggressive marketing linked to the iPhone 17 series and attractive bundled plans.

The telecom leader saw an increase of 405,000 monthly bill-paying wireless subscribers, outstripping the expected 334,100. This highlights the success of combining its wireless services with fiber broadband, as more than 41% of fiber customers have chosen mobile offerings, enhancing customer retention.

This quarter is usually pivotal for U.S. mobile carriers, and AT&T made the most of Apple’s iPhone launch with targeted campaigns aimed at driving both new subscriptions and upgrades. Consequently, not only did subscriber numbers rise, but equipment revenue also increased by 6.1%, signaling robust phone sales.

Operating expenses in the mobility sector increased by 3.8%, largely due to the uptake of premium devices and more intense marketing efforts related to the iPhone launch. On the flip side, challenges arose in AT&T’s business wireline sector, which saw a revenue decline of 7.8%, impacted by a downturn in traditional voice and data services.

Overall, AT&T reported a total revenue of $30.7 billion for the third quarter, slightly lower than the anticipated $30.87 billion. Adjusted earnings per share were 54 cents, consistent with market expectations. Notable strategic moves, including a $23 billion deal for wireless spectrum licenses from EchoStar, underscore AT&T's commitment to bolstering its network for forthcoming growth.

Even with the slight revenue dip, the quarter highlights AT&T's proficiency in fostering subscriber growth through bundled offers and strategic promotions, ensuring its competitiveness in a challenging wireless landscape.