Despite losing its exclusive hold on Apple's iPhone in the U.S., AT&T had a solid first quarter with revenues of $31.2 billion and an increase of 2 million wireless subscribers.
AT&T now has 97.5 million wireless customers, up 2 million during the quarter, its best-ever first-quarter increase, the company said.
AT&T activated 5.5 million smartphones in the first quarter, a 60 percent increase from last year. Of that, 3.6 million were iPhones, and AT&T said its "iPhone subscriber churn [was] unchanged year over year."
At the end of quarter, 46.2 percent of AT&T's 68.1 million postpaid subscribers had smartphones, a 34.7 percent increase from the year before. More than 80 percent of AT&T post-paid customers are on family or business discount plans.
AT&T reported revenues of $31.2 billion, up $700 million or 2.3 percent from the same time period last year. Its net income landed at $3.4 billion, up from $2.5 billion last year and $1.1 billion last quarter.
"Mobile broadband networks are driving unprecedented growth and innovation, and AT&T is playing a leading role in bringing these benefits to customers," AT&T chief Randall Stephenson said in a statement. "That's why our agreement to acquire T-Mobile USA, which we announced in March, is so important. Combined, the two companies' spectrum and network assets will allow us to simultaneously address spectrum issues created by this increased demand and improve customers' network experience as volumes continue to grow."
AT&T surprised the tech community last month when it announced plans to acquire T-Mobile for $39 billion. AT&T argued that the purchase will help stop the spectrum crunch and spur the companies's deployment of 4G service.
AT&T is currently in a battle with Sprint over whether its T-Mobile merger will hurt competition in the wireless space.
AT&T lost its iPhone exclusivity in February, when Verizon also started offering the Apple smartphone. Last month, AT&T said it had not experienced a high number of subscriber defections to Verizon, though it did not provide exact numbers.
"We haven't seen any surprises, and everything is pretty much within our expectations," Ralph de la Vega, president and CEO of AT&T Mobility and Consumer Markets, said during a conference.
Verizon said the iPhone resulted in its "most successful first day sales in the history of the company," but it has also not released specific numbers. Verizon will hold its first quarter earnings call on Thursday.
AT&T will hold a conference call at 10am Eastern with more details, so stay tuned.