AT&T says initial iPhone sales double that of last year

[AppleInsider]

AT&T said Wednesday that sales of Apple's iPhone 3G during the first twelve days were nearly double that of last year, this despite shortages that have seen backorders stretch one to three weeks at its retail stores.

AT&T made the announcement while releasing results for its fiscal second quarter, in which it said that profits rose 30 percent to $3.77 billion, or 63 cents per share, on revenue of $30.9 billion for the three months ended June 30. Those results don't include a boost from iPhone 3G, however, as the device did not go on sale until July 11th -- 11 days after the quarter's end.

The nation's largest telecoms firm said mobility, broadband connectivity and integrated services that encompass voice, data and video are driving a new wave of communications, and that it plans to enhance its premier networks and products to best deliver those emerging capabilities to both business and consumers.

"The Apple iPhone 3G is a dramatic example of this transformation," said chief executive Randall Stephenson. "In the days following our exclusive U.S. launch of this new device, powered by the nation's fastest 3G wireless network, customer response has been everything we had anticipated and more."

During the quarter, AT&T added 1.3 million wireless subscribers, which was about 200,000 shy of the 1.5 million added by main rival Verizon Wireless. Still, AT&T ended the quarter with 72.8 million customers compared to Verizon Wireless' 68.7 million, maintaining is rank as the largest US wireless provider.

Total wireless revenues increased 15.8 percent to $12.0 billion in the second quarter, and wireless service revenues, which exclude handset and accessory sales, grew 14.8 percent to $11.0 billion. AT&T said wireless revenue growth was driven by its solid subscriber gains and a greater number of customers choosing more advanced smartphones and integrated devices like the iPhone.

Those smartphone users helped more than doubled AT&T's wireless data revenues to $2.5 billion, while revenues from e-mail, messaging and data access also saw greater than 50 percent growth. At the same time, text messaging volumes tripled versus totals for the year earlier, and multimedia message volumes increased more than 170 percent. At the end of the second quarter, approximately 18 percent of AT&T's postpaid wireless subscribers had an integrated device, up from 8 percent last year.

On average, AT&T said iPhone and other smartphone subscribers produce average revenues of roughly double the company average. The carrier expects continued strong growth in wireless data services as more customers choose data plans and advanced wireless devices such as the new iPhone 3G.

AT&T also said that retail postpaid churn -- or number of subscribers who left and were subsequently replaced -- moved down to 1.1 percent in the second quarter, which represents the lowest level in its corporate history.

[ View this article at AppleInsider.com ]

[mstone]

Originally Posted by AppleInsider

"In the days following our exclusive U.S. launch of this new device, powered by the nation's fastest 3G wireless network, customer response has been everything we had anticipated and more."

I have to say, the 3G network is really pretty fast. Even though I have only a single bar of signal strength, I'm getting really fast throughput.

[solipsism]

iPhone sales are only double that of last year? I would have thought it would be considerably higher with the lower initial cost, the addition of 3G and GPS.

Originally Posted by mstone

I have to say, the 3G network is really pretty fast. Even though I have only a single bar of signal strength, I'm getting really fast throughput.

I was getting slightly over 2Mbps with the aggregated Rx and Tx last night on my MB using a Seirra 881 USB radio.

[bigmc6000]

Originally Posted by solipsism

iPhone sales are only double that of last year? I would have thought it would be considerably higher with the lower initial cost, the addition of 3G and GPS.




I was getting slightly over 2Mbps with the aggregated Rx and Tx last night on my MB using a Seirra 881 USB radio.

Well as opposed to last year I'd say it's only double because of the supply issue. I don't recall there being lines every single morning 2 weeks after release as well as virtually every single AT&T store being sold out.

In addition I've got people here at work who aren't technically prone AT ALL buying the iPhone so I think their low selling point is doing the trick. The one person in particular has never sent a text message nor has he ever owned an iPod. So yeah, the marketing scheme is working very, very well...

[astromac]

Originally Posted by AppleInsider

AT&T said Wednesday that sales of Apple's iPhone 3G during the first twelve days were nearly double that of last year, this despite shortages that have seen backorders stretch one to three weeks at its retail stores.

This statement is too vague. Does it mean that total iPhone 3G sales were more than *all* of last year's sales, or just the first twelve days of last year? That is, is the *rate* of sales (iPhones per day) double? I imagine this is what they are saying. If so, this is not that enlightening at all. We already know that in the first three days, the sales rate was nearly four times that of the original iPhone (1 million vs. 270,000).

[mh71]

Originally Posted by astromac

This statement is too vague. Does it mean that total iPhone 3G sales were more than *all* of last year's sales, or just the first twelve days of last year? That is, is the *rate* of sales (iPhones per day) double? I imagine this is what they are saying. If so, this is not that enlightening at all. We already know that in the first three days, the sales rate was nearly four times that of the original iPhone (1 million vs. 270,000).

Vague is the word alright. Are they counting only AT&T chanel sales? Are they counting activations? Are they counting Apple sales as well? And their (Apples) backorders?

[mark2005]

Originally Posted by solipsism

iPhone sales are only double that of last year? I would have thought it would be considerably higher with the lower initial cost, the addition of 3G and GPS.

The quote is definitely ambiguous. Is it iPhone handset sales or is it new two-year contract subscribers? If it is only iPhone 3G handset sales, then it doesn't include those sold by Apple.

mh71 just beat me to the thought...

[johnqh]

People are missing an extremely important element from AT&T (it seems to be in a seperate press release)

I am sure AI will make it a seperate article.

AT&T Global Business Servics...

"Following the close of the quarter, Oracle was among the first business customers to deploy iPhone 3G, which went on sale July 11 and includes business-class wireless data features, and e-mail."

You know what that means. I am kicking myself for not getting AAPL at $150.

[sah]

If you are an existing AT&T customer and you go to buy an iPhone make sure your AT&T bill is paid. I stood in line for an hour and a half this morning at an Apple Store only to find out AT&T wanted to charge me $100. more because I wasn't eligible for the up date. I left and stopped at an AT&T store to find out what the extra money was about. I had an over due bill. I paid the bill but I don't have an IPhone.

[SpamSandwich]

Originally Posted by sah

If you are an existing AT&T customer and you go to buy an iPhone make sure your AT&T bill is paid.

Shouldn't that have been self-evident?

[sah]

Yes that wasn't to smart on my part. i am in Delaware for a few weeks and the bill goes to Florida. I forgot abut it.

[Sky King]

I had an over due bill. I paid the bill but I don't have an IPhone.[/QUOTE]


It is a consistent source of amusement to me that there are so many people who do not pay their bills on time but still seem irate when their service is cut off or they incur a penalty. Remember that the company (AT&T) in this case has paid the bill for your wireless use and is only requesting that you reimburse them in a timely fashion.

[solipsism]

Originally Posted by sah

Yes that wasn't to smart on my part. i am in Delaware for a few weeks and the bill goes to Florida. I forgot abut it.

With most of your bills, they can be paid online. Set up auto-pay on AT&T sit, or go to iCal and setup a reoccurring alarm for a few days before your bill is due so you don't forget.

[cameronj]

Originally Posted by sah

If you are an existing AT&T customer and you go to buy an iPhone make sure your AT&T bill is paid. I stood in line for an hour and a half this morning at an Apple Store only to find out AT&T wanted to charge me $100. more because I wasn't eligible for the up date. I left and stopped at an AT&T store to find out what the extra money was about. I had an over due bill. I paid the bill but I don't have an IPhone.

How unfair! They wouldn't give you a $400 credit on a phone just because you owed them money already? Boy, life sure is unfair! Where do they get off demanding you pay them what you owe them before they give you a huge benefit?!?!?!

Sheesh

[Charko]

Originally Posted by Sky King

I had an over due bill. I paid the bill but I don't have an IPhone.

It is a consistent source of amusement to me that there are so many people who do not pay their bills on time but still seem irate when their service is cut off or they incur a penalty. Remember that the company (AT&T) in this case has paid the bill for your wireless use and is only requesting that you reimburse them in a timely fashion.[/QUOTE]

Don't be a prig, dear boy.

[steviet02]

Originally Posted by mstone

I have to say, the 3G network is really pretty fast. Even though I have only a single bar of signal strength, I'm getting really fast throughput.

I think their icon depiction of the signal strength may be off. Typically when the signal gets weaker, the more error correction is run on the incoming signal which slows everything way down and will chew up even more battery power. Like you I am noticing that the signal shows 1 bar sometimes 2 but it still shows no significant drop off in performance from when I have full bars.

[kresh]

Originally Posted by AppleInsider

During the quarter, AT&T added 1.3 million wireless subscribers, which was about 200,000 shy of the 1.5 million added by main rival Verizon Wireless. Still, AT&T ended the quarter with 72.8 million customers compared to Verizon Wireless' 68.7 million, maintaining is rank as the largest US wireless provider.

Well that will be short lived once Verizon's acquisition of Alltel is complete. Verizon will gain another 13 million subscribers with this purchase. But as big as Verizon gets, it can't compete with the global GSM subscriber base.

All in all I guess I am glad that Apple went GSM as a business decision.

[kvocal]

ATT still has poor coverage. When people I know move to ATT the first thing they bring up is that the coverage is not as good as Verizon. This is the one factor that holds the iPhone back.


Come On ATT.

[slapppy]

I'm loving 3G. AT&T just needs to keep plugging away with coverage and reliability of connection and speed. I don't miss EDGE, but its also nice to have it when I need to get net or email...

[EyeNsteinNo]

Additionally, Steve did mention that the iPhone was absolutely "not suitable for business purposes" due to its complete lack of a keyboard, but considering its half-hearted attempt at Push mail and lack of 3G, we doubt Mr. Jobs is out fighting for the corporate market just yet anyway.
(by engadget, Darren Murph 01-18-07)

Has Mr. Ballmer made any comments yet on the iPhone 3G yet?, because "just yet anyway" is here already.

PS: Value of Vista V=SqRoot of 1984/SBIQ=.6455378

[solipsism]

Originally Posted by EyeNsteinNo

Additionally, Steve did mention that the iPhone was absolutely "not suitable for business purposes" due to its complete lack of a keyboard, but considering its half-hearted attempt at Push mail and lack of 3G, we doubt Mr. Jobs is out fighting for the corporate market just yet anyway.

I don't recall Jobs ever stating that.

[EyeNsteinNo]

The "Steve" Darren Murph was quoting in his Jan 18, 2007 article was Steve Ballmer(SB), not Jobs.

PS: Also note in the equation when SB's IQ goes up, the value of Vista decreases and when SB's IQ goes down the value of Vista goes up.

[justflybob]

This story is nice and all, but what about sustainable run rates and sales targets?

[EyeNsteinNo]

The article by Darren Morph in engadget jan 18, 2007 was titled 'Steve Ballmer laughs off the iPhone" came right after the WWDC in 2007. the article can be found here:


www.engadgetmobile.com/2007/01/18/ steve-ballmer-laughs-off-the-iphone-deems-it-most-expensive-i/

PS: Anyone out there who knows SB's current IQ?

[Hoosier 171]

I am surprised at the number and that people are still lining up after all of the problems that people are having with their phones. Ive told all of my friends to wait til the update before buying one (i am personally on my second iphone 3G)

[sammick]

Originally Posted by kvocal

ATT still has poor coverage. When people I know move to ATT the first thing they bring up is that the coverage is not as good as Verizon. This is the one factor that holds the iPhone back.


Come On ATT.

It would be helpful if people who complained about bad coverage would mention where they

are.

[solipsism]

Originally Posted by sammick

It would be helpful if people who complained about bad coverage would mention where they are.

That is because their only focus is complaining, not trying to find a resolution or figuring out the source of their issue.