2024-07-25 07:35:00 ET
Coming a few days after a mixed earnings report from rival Verizon Communications , AT&T 's (NYSE: T) second-quarter report suffered from a similar problem. Wireless customers have been slow to upgrade their smartphones, leading to lower equipment revenue for the wireless leaders.
AT&T saw equipment revenue drop 5.8% year over year in the second quarter, enough to cause the company to miss analyst expectations. But unlike Verizon , which saw its stock drop in the wake of its earnings report, AT&T stock had one of its best days in months on Wednesday.
The sluggishness of customers upgrading their phones does reduce AT&T's revenue, but it doesn't turn a profit on equipment sales. Discounted and subsidized smartphones are a component of the company's customer acquisition strategy.
For further details see:
AT&T Impresses With Subscriber Growth and Free Cash Flow