AT&T's Revenue Not At Par Following Drop in iPhone Activations

US wireless carrier AT&T has reported a sluggish third quarter performance, barely meeting Wall Street expectations, as the number of iPhone activation drops.

For the third quarter of 2011, the company reported revenue of $31.5 billion, which was 0.3 percent less than what it had made in the third quarter last year. AT&T also reported a net income of $3.6 billion.

AT&T also revealed that it had activated 2.7 million iPhones in the third quarter of 2011, the lowest figure in the last 18 months. However, the company seems confident that it will have blockbuster sales of the low cost iPhone 3GS, smartphones based on the new LTE technology and the iPhone 4S in the fourth quarter, thanks largely to the upcoming holiday season.

"Mobile broadband growth continues to be robust, execution was strong across the business, and we delivered another solid quarter," said Randall Stephenson, AT&T chairman and chief executive officer. "Smartphones, connected devices and tablets all posted impressive gains. Our first LTE 4G markets are up and running with terrific speeds. And we continue to work toward a successful completion of our planned T-Mobile USA merger," he added reports CBROnline.