AT&T Inc. sold a record number of iPhones in the latest quarter, continuing to siphon subscribers from other wireless carriers in a tightening industry.
The country's largest telecommunications company on Thursday said it activated 5.2 million units of Apple's phone, roughly 400,000 more than analysts had expected.
Dallas-based AT&T is the exclusive U.S. carrier for the iPhone.
Across all types of phones, AT&T added a net 745,000 subscribers on contract-based plans, matching analyst expectations.
The success in subscriber recruitment didn't immediately translate into a corresponding jump in profits for AT&T.
Excluding a gain on a tax settlement and the effects of the sale of a subsidiary, AT&T's income was 55 cents a share, up 3.8 percent from a year ago, despite having 14 percent more wireless subscribers and getting higher fees out of its smartphone subscribers each month. The earnings matched Wall Street expectations.
Revenue climbed 3 percent to $31.58 billion from $30.7 billion a year ago. Analysts were expecting revenue of $31.25 billion, according to a poll by Thomson Reuters.