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Apple's iPhone accounts for 77% of AT&T's 6.1M smartphone activations

post #1 of 24
Thread Starter 
AT&T announced on Wednesday that it activated 4.7 million iPhones in the third quarter of 2012, once again giving Apple the lion's share of smartphone activations on the carrier.

With 6.1 million total smartphones activated in the quarter, Apple's iPhone accounted for more than 77 percent of AT&T's smartphones. Though Apple remained dominant, AT&T noted that sales for Android and Windows smartphones also reached record levels.

AT&T


Of the 4.7 million iPhones activated on AT&T, 18 percent of those were new to the carrier. The carrier also noted that its postpaid results were affected by iPhone 5 inventory constraints, though AT&T's press materials did not indicate exactly how many iPhone 5 units were sold at launch.

Constraints on iPhone 5 inventory resulted in the "vast majority" of iPhone sales in the quarter going to existing customers. AT&T noted there was "considerable pent-up demand" for the iPhone 5, and that Apple's latest handset set a sales record during the first few days of the preorder period.

Last week, AT&T's chief competitor Verizon revealed that it sold 3.1 million iPhones in the third quarter, and that 650,000 of them were iPhone 5 units. Verizon sold a total of 6.8 million smartphones in the quarter, while Android devices accounted for 3.4 million smartphone activations.

Apple's share of the smartphone pie at AT&T is considerably higher because AT&T was Apple's exclusive iPhone carrier partner for years before Verizon, and later Sprint, joined the fold.



Overall, AT&T saw 63 cents diluted earnings per share, compared to 61 cents in the same period a year ago. It also saw record cash from operations of $11.5 billion, and free cash flow of $6.5 billion.

"We had another impressive quarter with strong earnings growth, record cash flows and solid returns to shareholders through dividends and share buybacks," said Randall Stephenson, AT&T chairman and chief executive officer. "In wireless, we had another excellent smartphone quarter, penetration of usage-based mobile data plans continues to climb, and our 4G LTE network build is ahead of schedule. And in wireline, our IP network continues to deliver strong gains in U-verse high speed Internet connections, which helped drive an almost 10 percent increase in broadband data ARPU."

AT&T's earnings come a day before Apple is set to report its own quarterly results. Apple's September quarter will include the first week of iPhone 5 sales.
post #2 of 24
Well...should we really try to figure out whether Android is winning at AT&T?
post #3 of 24

so iPhone accounts for over 60% of smartphone sales when combining Verizon and AT&T.

post #4 of 24
Quote:
Originally Posted by OllieWallieWhiskers View Post

so iPhone accounts for over 60% of smartphone sales when combining Verizon and AT&T.
Wonder what Sprint's numbers will be. Apple's stock is up slightly pre-market so I'm assuming wall street liked this AT&T number.
post #5 of 24

"There are 23% of the people who will buy the other stuff no matter what. ..... And they will buy Android cr4p no matter what."

post #6 of 24

Why does Verizon give a sold number and AT&T an activated number?

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I'm not a pessimist. I'm an optimist, with experience.
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post #7 of 24
I wonder how many of those activations were hand-me-down iPhone 4s and 4Ss.
post #8 of 24
Quote:
Originally Posted by thataveragejoe View Post

Why does Verizon give a sold number and AT&T an activated number?

I am totally confused here. On one hand some people say that android sales have topped iPone sales by far, and then comes AT&T and says 77% of their activations are iPhones. Do all these overwhelming majorities of android users have smartphones without a mobile provider? Are they using WiFi only communication? 

post #9 of 24
Quote:
Originally Posted by Rabbit_Coach View Post

I am totally confused here. On one hand some people say that android sales have topped iPone sales by far, and then comes AT&T and says 77% of their activations are iPhones. Do all these overwhelming majorities of android users have smartphones without a mobile provider? Are they using WiFi only communication? 

android wins in other countries where you have to buy the phone outright, full price. lots of cheap android phones in the $200 range. in the US with family plans you have to be stupid to pay full price for a phone if you're on a family plan

post #10 of 24
Originally Posted by ChristophB View Post
I wonder how many of those activations were hand-me-down iPhone 4s and 4Ss.

 

Do you have any reason to believe that Apple double-dips activations?

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #11 of 24
Quote:
Originally Posted by al_bundy View Post

android wins in other countries where you have to buy the phone outright, full price. lots of cheap android phones in the $200 range. in the US with family plans you have to be stupid to pay full price for a phone if you're on a family plan

Sorry I didn't make myself clear. I was talking about the US market. In other countries with lower income, it's definitely android who is leading in marketshare because heaps of cheap products.

post #12 of 24
Quote:
Originally Posted by Tallest Skil View Post

 

Do you have any reason to believe that Apple double-dips activations?

 

Hmm - what about exchanges and warranty replacement? How many folks got three or four iPhone 4S units because the color balance was slightly different than the iPhone 4? and do each of those count as an activation because it is a net new serial number - or are they only counting how many separate phone lines were added? Would be interesting - although likely also confusing - to see all the raw data. 

post #13 of 24
Originally Posted by lilgto64 View Post
How many folks got three or four iPhone 4S units because the color balance was slightly different than the iPhone 4?

 

You mean the people that refused to wait until the glue was dry? lol.gif

 

I'd hope that if those were activated before return that their numbers be wiped from activation once they hit the internal system again.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #14 of 24
Quote:
Originally Posted by Tallest Skil View Post

Do you have any reason to believe that Apple double-dips activations?

How about all those millions of handed down iPhones? How many children or significant other were upgraded from a feature phone or Android and are now another activated iPhone.
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #15 of 24
Quote:
Originally Posted by Tallest Skil View Post

Do you have any reason to believe that Apple double-dips activations?

Nope, not implying that. AT&T reported activations of iPhones. I had two 4Ss that went to friends that were not iPhoners and they deactivated older Samsung Galaxy devices. I'm just curious about the breakdown of the numbers i.e. new iPhone 5, new iPhone 4S, activation of passed down iPhones to existing AT&T customers and passed down iPhones to new AT&T customers.

Edit: And I'm certain we'll never see deactivation numbers by handset from any carrier or manufacturer.
Edited by ChristophB - 10/24/12 at 8:19am
post #16 of 24
Quote:
Originally Posted by dasanman69 View Post


How about all those millions of handed down iPhones? How many children or significant other were upgraded from a feature phone or Android and are now another activated iPhone.

no need for that now that iphone is free on contract

post #17 of 24
Quote:
Originally Posted by Rabbit_Coach View Post

Sorry I didn't make myself clear. I was talking about the US market. In other countries with lower income, it's definitely android who is leading in marketshare because heaps of cheap products.

i read somewhere that the android market share is only so high because of developing countries. in the US iphone share is higher than android share.

post #18 of 24
Quote:
Originally Posted by al_bundy View Post

no need for that now that iphone is free on contract

What if the person is mid contract?
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #19 of 24
Quote:
Originally Posted by al_bundy View Post

no need for that now that iphone is free on contract

I passed my spares to Android users so they could activate w/o having to be burdened with new contracts. If they didn't like the iPhone experience they wouldn't be burdened with a two year commitment. No complaints so far. In fact, lots of praise for how solid the OS is.
post #20 of 24
Quote:
Originally Posted by ChristophB View Post

I passed my spares to Android users so they could activate w/o having to be burdened with new contracts. If they didn't like the iPhone experience they wouldn't be burdened with a two year commitment. No complaints so far. In fact, lots of praise for how solid the OS is.

How many spares did you have?
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
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post #21 of 24
Quote:
Originally Posted by dasanman69 View Post

How many spares did you have?

Replaced 2x 4Ss that were still part of a contract. Costly yes, but I'm one of the few that would prefer paying full price for a device and drop my monthlies.
post #22 of 24

The data from Verizon and now ATT show how silly the past arguments have been about dropping iPhone subsidies by the carriers. I don't think anyone would want to chance losing the iPhone subscribers. But I am sure that won't stop some blogger somewhere to bring this argument up again and for some in the financial press to run with the story.

post #23 of 24
Quote:

Originally Posted by AppleInsider View Post

... postpaid results were affected by iPhone 5 inventory constraints ...

 

... Constraints on iPhone 5 inventory resulted in ...

 

The word "constraints" should be sending Tim Cook a clear message that if Apple were able to produce enough iPhones to meet demand, their share at AT&T (and Verizon and Sprint et al) would be higher.  But there's no hurry.  Tim will work to increase production by simplifying iPhone design, by streamlining the manufacturing process, and by adding production capacity.  Simultaneously, methodically, while making sure everything is under control at all times.

 

This is a very long race, and we're barely entering the first turn.  Tim knows that.  Better to take the time to get it all right.

Sent from my iPhone Simulator

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Sent from my iPhone Simulator

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post #24 of 24
Quote:
Originally Posted by Rabbit_Coach View Post

I am totally confused here. On one hand some people say that android sales have topped iPone sales by far, and then comes AT&T and says 77% of their activations are iPhones. Do all these overwhelming majorities of android users have smartphones without a mobile provider? Are they using WiFi only communication? 

 

Some people get their phones where they do their "cash advance" banking. 

"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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"That (the) world is moving so quickly that iOS is already amongst the older mobile operating systems in active development today." — The Verge
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