AT&T reported its first quarter 2014 results, showing impressive growth in revenues, handset sales and customer acquisition for the quarter. While AT&T operates businesses outside of its wireless division, we're going to focus on this portion. For the quarter, AT&T posted $17.9 billion in revenue including handset sales, up 7 percent year-over-year, leading to $5.1 billion in operating income, up 8.1 percent.

On the customer side, AT&T added 625,000 postpaid customers, its largest first quarter gain in five years. It also added 693,000 "connected devices," but saw prepaid customers dip overall in the quarter mostly due to the loss of over 200,000 reseller subscribers. Of those additions, 311,000 were for postpaid smartphones, while 313,000 were tablets.

AT&T sold 5.8 million smartphones in total for the quarter, making up 92 percent of all postpaid phone sales — which first quarter record. This leads to 78 percent of AT&T's postpaid customers now using smartphones, up from 74 percent this time last year. In terms of connectivity, 57 percent of AT&T's postpaid smartphone subscribers have an LTE-capable device.

One interesting note on the growth was that AT&T says 40 percent of the gross smartphone additions and upgrades came by way of its AT&T Next device installment plan, up from just 15 percent last quarter. Additionally, about 45 percent of all postpaid subscribers are now on a Mobile Share plan, with a full 81 percent now being on some form of usage-based billing (i.e. not unlimited) plan.

Source: AT&T


Reader comments

AT&T posts $17.9 billion in revenue, adds 625,000 postpaid customers in Q1


10GB plan with unlimited call /text with international texting for my wife and I. With my company discount, it's comes to $105/m + tax/insurance.. I was paying 165/m on Sprint. So happy I switched.

Nexus 4 - CM10.1.3

This is the biggest point for me. I pay about the same with 2 unlocked s4's from tmobile. With my discount it was a no brainer. Saving money is saving money. Im also suprised by my coverage. 90 percent of the time im on lte even in buildings.

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So this is the huuuuuuggggeeee damage T-Mobile has done to them? Lol.

No matter. AT&T still has more than adequate coverage for me. That's why I'm not leaving them.

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Exactly, T-mobile didn't even make a mark. The only thing they have done is forced them to break out the cost of the phone from the monthly charges so it LOOKS cheaper. After everything is said and done you have paid the same amount over two years. Five Galaxys on the old Mobile Share 10GB was $7660 after two years, while the new Mobile Share Value is $7450 before you pay sales tax during activation, if each phone has $50 in sales tax you are right back where you started at $7600, plus you don't have to pay for something like "jump" in order to trade in and upgrade early.

It's easy to offer unlimited data when you only have one fourth of the customers as At&t or Verizon. They need about the same amount of cell towers to cover the same area but with such fewer customers they are able to offer unlimited, and without it they would not have much going for them.

So you're saying that AT&T charges its customers more money because they have more customers on their network?

AT&T is smart. Stupid people are coming in droves.

Posted via SPARK enabled Sprint LG G2 that still spins fast after using 60GB in a billing cycle. {No Overages}

No that's not what I said at all. I said T-Mobile has not influenced them to drop their prices, just change the way they price everything. On a side note I said that just because they have unlimited doesn't mean that At&t and Verizon can too.. Consumers just aren't willing to pay as much to T-Mobile so they are lucky they have less data traffic to deal with and are able to offer unlimited as their differenciator

If only people new Verizon has the absolute beat coverage at the exact same prices as at&t...I do think at&t customer service sucks too. The 1 thing I'll give at&t is that they have the best lineup of devices from any carrier honestly

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They may have the best coverage, yes, but AT&T has a better LTE network. I travel between three states and in all three, Verizon has marginally better coverage but AT&T has twice, if not three times the LTE speed that Verizon has.

At least in my experience.

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Verizon might have the better coverage but AT&T's LTE is faster and I'm not obligated to get a Verizon phone as I can just buy any unlocked device and use it on AT&T :)

Posted via a device much better than yours.

I wouldn't even give at&t a thing. All these people praising them now will sing a different tune in a couple of years.

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Some people hate AT&T just because they are a big corporation and have no other basis. I can't believe that people still bitch and after all the price adjustments they have done to gain customers. Bad customer service is just one's opinion, they have won top ratings by JD power like 2 years in a row. Don't go by anyone's opinion, and try it out for your own and then judge. In my experience I have had the best customer service hands down each and every time. Some people hate them just because its AT&T and nothing else just as they hate verizon, somehow corporation making profit is a bad thing, I mean afterall they have to stay in business too.

Left Sprint last year and just put myself and my wife on the 10 GB shared data. We're paying pretty much the same thing we were paying when both of us was on the gophone plan.

As someone stated earlier, Verizon may have the best coverage, but AT&T isn't too far behind. For me, they have the best selection of phones bar none. It's also has more frequently used bands for unlock devices to boot. So far, my wife and I have no complaints.

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I live in Georgia what should be AT&T's home grounds and was in Arizona(all over the state) two weeks ago. With that and all the other states I've been to, to even try to same Verizon and AT&T's coverage is similar is far from true. But for me I'll deal with less coverage for half the price with straight talk on my nexus 5 its not worth the premium price in my opinion. That and locking down their network is just another negative.

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Actually Texas is ATT's home turf (Corporate HQ in Dallas) and ATT hand down has the best network here. I have a Verizon work phone and it is really no contest vs ATT. So it depends on where you live.

I'm one of those 625,000...Sprint left me no choice in the matter..I happily paid an ETF on one of our lines to rid myself and my wife of Sprint until their network roll out is complete

I wouldn't get your hopes up. I'm in a major city where the rollout is supposedly complete. LTE speeds 3-8 Mbps everywhere I went. I don't need the fastest connection out there, but that's kinda sad. Not to mention LTE was always dropping back to 3g, which is basically dial-up.

T-Mobile's Q1 results aren't due out til May 1st, commenting a bit prematurely, huh?

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I don't think you understand Jay. It doesn't matter how good or bad T-Mobile did. The point is that Verizon and AT&T aren't losing anything from T-Mobile. Whatever T-Mobile does doesn't even phase the big 2.

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When most of Verizon's and AT&T's customers don't care what finger their carrier sticks up their Asses, this is the outcome

Posted via SPARK enabled Sprint LG G2 that still spins fast after using 60GB in a billing cycle. {No Overages}

Oh you mean when you pay for a Rolls Royce and get Rolls Royce coverage instead of edge speeds? OK.

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Finally, the truth arrives. T-Mobile is a marketing company, similar to "Lexus". They are a joke. No, their LTE isnt as fast, no, their price points aren't that much cheaper if at all, YES, they are full of B.S.
- A VZW user, before I get flamed.

I get speeds as high as 30-40mbps on T-Mobile's LTE, that's the real world, not "marketing".

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T-Mobile is probably good now but they lacked solid service a few years back and it caused some of us to flee. Also I'm sure that some people left in fear of that acquisition and haven't returned due to inconsistency.

AC App via Nexus 5

Sorry Jay but in the real world right where I'm standing T-Mobile LTE gets maybe 3mbps. My AT&T phone gets 20.

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It may not be perfect everywhere, but I guarantee you could find some ATT LTE that only gives you 3Mbps down if you are in the right place. I get 30-40 where I am on T-mobile as well. I won't try and say their LTE covers as much area as ATT's does, because at least right now it doesn't. However, they're working on it, and their attitude and customer friendly policies are really nice.

AT&T has great customer service. Number 1 I've only lyrics had to call them twice in 4 years. Number they fixed my problem without a fuss.

I want to have coverage. T-MOBILE has the worst coverage.

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But Scott you have high latency with HSPA+. LTE is low latency. That is important with Internet speeds too.

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Sounds good to me. I switched back in '11 because of T-Mobile lacking 3G in Pensacola. I don't plan on leaving big blue. Plus I just dropped my plan price by about 100 bucks/month. Nexus 5 on LTE. Can't be beaten.

AC App via Nexus 5

Funny ya'll talking about the T-mobile effect. I got a feeling these additions are from Sprint. I have a feeling T-Mobile numbers are going to look good also.

It doesn't matter how good or bad T-Mobile does. The point is that Verizon and AT&T aren't affected by what T-Mobile does.

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So T-Mobile is just changing things to make it so that AT&T and VZW have lower prices and still gain more and more customers. So now that the price difference between the big 2 and T-Mobile is no longer that much where does that leave T-Mobile? Pay 10 bucks more for 1p times better coverage? T-Mobile will go out of business.

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And we should not be on their side... We pay them for service and they provide it. Simple as that. Since 1997 AT&T has provided adequate service for me and I pay them. But I agree with your point, they are in business to make a profit. If I ever think I am paying too much for what I am getting, I will pay the EFT if I owe one, and move to another carrier. But with my corporate discount and device selection I am satisfied with ATT at this point as are 100+ million others.

"I will pay the EFT if I owe one, and move to another carrier"

What, like Verizon, where you will pay just as much or more? Or maybe T-mobile, where coverage is modeled after swiss cheese and is only slightly cheaper? Or perhaps Sprint, with crap speeds and pricey plans. Not a lot of great options out there.

I still have my original T-Mobile Android plan, and I use AT&T MVNO carriers. Right now on AIO. My wife uses T-Mobile, and we use T-Mobile for a "house" phone. Not because of any loyalty, but because it's cheap and works right for us. I'll drop any of these suckers in a heartbeat and buy a new prepaid SIM from Target if they try something stupid :P

I would love to enjoy the speed of their LTE network, but I burn through 6 gigabytes of data in one week much less one month I can't afford any type of limit whatsoever

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Joel I have the same problem.

Here's how you fix it.
Walk into a AT&T or Verizon store. Tell them you have Sprint or T-Mobile. They will say that they're better in every way.

Now tell them the price you pay. They will match or beat it.

Now show them your data usage screen.
Did they tell you to stay with your carrier???????

Posted via SPARK enabled Sprint LG G2 that still spins fast after using 60GB in a billing cycle. {No Overages}

Lol! Good one, I really should try that just to see then looks on their faces one day. I hear verizon has a book of 'special' plans that they'll only discuss if asked. Ill poke around on that as well

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Why not just buy an unlocked Z30 yourself and put in an AT&T Sim card?

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