AT&T ( has announced its fiscal second quarter results. The company says it activated 3.7 million iPhones during the quarter; that’s down from 4.3 million in the previous quarter.

However, the 3.7 million iPhone activations accounts for approximately 73% of AT&T’s 5.1 million total smartphone sales during the quarter. For the quarter ended June 30, 2012, AT&T’s consolidated revenues totaled US$31.6 billion, up 0.3% versus the year-earlier quarter.

Compared with results for the second quarter of 2011, operating expenses were $24.8 billion versus $25.3 billion, down 2.3 percent year over year; excluding Advertising Solutions, operating expenses were $24.5 billion versus $24.6 billion in the year-ago quarter, down 0.6 percent.

Operating income was $6.8 billion, up from $6.2 billion. AT&T’s operating income margin expanded to 21.6%, compared to 19.6%, the best in four years.
Second-quarter 2012 net income attributable to AT&T totaled $3.9 billion, or $0.66 per diluted share, up from $3.6 billion, or $0.60 per diluted share, in the year-earlier quarter.