AT&T Exceeds Subscriber Expectations with iPhone 17 Campaign

In a surprising turn, AT&T has outperformed its subscriber goals for the third quarter, drawing in more wireless customers than predicted thanks to robust promotions linked to the iPhone 17 series and bundled service deals.

The telecom leader successfully added 405,000 monthly bill-paying wireless subscribers, exceeding the forecast of 334,100. This achievement highlights the effectiveness of its strategy to combine wireless and fiber broadband services. The popularity of bundled offerings has soared, with over 41% of fiber households choosing mobile plans, consequently reducing churn and enhancing customer loyalty.

During this critical period for U.S. wireless carriers, AT&T strategically tapped into the latest iPhone launch, executing targeted promotions aimed at not just attracting new subscribers but also encouraging upgrades to higher-tier options. This tactic not only fueled subscriber growth but also increased equipment revenue by 6.1%, signifying strong phone sales.

However, operating costs in AT&T's mobility division rose by 3.8%, mainly due to the sale of more expensive devices and intensified marketing surrounding the iPhone launch. Meanwhile, the business wireline unit struggled, experiencing a 7.8% revenue decline attributed to reductions in legacy voice and data services.

Despite slightly missing the revenue estimate, with a total third-quarter revenue of $30.7 billion compared to the $30.87 billion forecast, AT&T reported adjusted earnings per share of 54 cents, aligning with market predictions. The company's strategic moves, such as a $23 billion acquisition of wireless spectrum licenses from EchoStar, emphasize AT&T's commitment to enhancing its network capabilities for future competitiveness.

In sum, the third quarter illustrates AT&T's adeptness at fostering subscriber growth through strategic bundling, irresistible promotions, and substantial investments, reinforcing its position in the competitive wireless arena.