AT&T posts Q2 profit of $3.9B, sells 3.7M iPhones

From CNET News.com: AT&T posted a modest increase in its second-quarter profit even as it sold 3.7 million iPhones in the period.

The Dallas telecommunications giant posted a profit of $3.9 billion, or 66 cents a share, compared with a year-earlier profit of $3.6 billion, or 60 cents a share. Year-earlier results were helped by the its advertising unit, which no longer contributes revenue or profit because it was sold in May.

Revenue rose 0.3 percent to $31.6 billion.

Analysts, on average, forecast earnings of 63 cents a share and revenue of $31.7 billion, according to Thomson Reuters.

AT&T, like Verizon, continues to be dependent on the iPhone for its subscriber growth. In the quarter, the company said 22 percent of its 3.7 million newly activated iPhones came from new customers. Verizon last week said it added 2.7 million iPhones in the period, as well as 2.9 million total Android smartphones.

The iPhone continues to be an expensive catalyst for the carriers. While it propels customer growth, it carries a cost in the form of the pricey subsidy AT&T must pay to Apple. Still, with virtually every carrier selling the iPhone, it's become a must-have product for every wireless player.

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