Although the quarter is not yet over and official numbers are not yet out, AT&T reported record smartphone sales for Q3. The company cited strong customer response to new marketing programs, new devices and the expansion of its 4G LTE network, which now covers 240 million people.
AT&T said third quarter smartphone upgrades should be higher year over year, similar to second quarter 2013, and the company expects to grow its smartphone base by more than 1 million in the quarter.
AT&T expects lower year-over-year smartphone upgrades in the fourth quarter, however, given the higher upgrade expectations for the third quarter and the new 24-month upgrade policy.
In addition, AT&T noted strong U-verse sales, saying it now expects to reach 10 million total U-verse subscribers by the end of the third quarter. Consumer wireline revenue growth for the third quarter should be consistent with second quarter 2013.
AT&T also confirmed published reports that it is exploring the possible sale and lease-back of some or all of its remaining wireless tower assets.