AT&T activates record 3.2 million iPhones, with 27% new accounts

Posted:
in iPhone edited January 2014
The iPhone single-handedly brought 860,000 new customers last quarter to wireless provider AT&T, the exclusive carrier of Apple's handset in the U.S.



AT&T announced its quarterly earnings Thursday morning, and revealed that it had earned $30.8 billion in revenue in its second fiscal quarter, amounting to $0.61 earnings per share. Helping the company to those numbers was Apple's iPhone, of which the carrier activated a record 3.2 million in the three-month period.



AT&T said that 27 percent of those 3.2 million iPhone activations were from new customers, which means the device brought 860,000 new subscribers to the carrier. Last quarter was bolstered by the launch of the iPhone 4, of which Apple sold 1.7 million in the first three days internationally.



The ratio of new customers is lower than the previous quarter, when AT&T activated 2.7 million iPhones, of which more than a third were new subscribers.



AT&T again noted that iPhone 4 preorder rates were 10 times higher than the first day of preordering for the iPhone 3GS in 2009.



AT&T's earnings per share were up 25.9 percent from the same period in 2009, and revenue increased $194 million, or 0.6 percent. The earnings per share beat Wall Street expectations, while revenue was lower than anticipated.



The iPhone helped AT&T reach 1.6 million net adds in total wireless subscribers, which was the company's best-ever second quarter. AT&T now has 90.1 million customers in service.



Wireless revenues increased 10.3 percent, and postpaid average monthly revenues per subscriber were up 3.4 percent. Wireless data revenues grew even greater, up $936 million over 2009, for 27.2 percent year-over-year growth.



"We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year," said Randall Stephenson, AT&T chairman and chief executive officer. "We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver -- mobile broadband. I am excited by the opportunities ahead."
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Comments

  • Reply 1 of 23
    solipsismsolipsism Posts: 25,726member
    Verizon’s earnings come out tomorrow. Who will win this quarterly round of net adds and churn? Will AT&T best Verizon is total subs before the Apple contract ends?
  • Reply 2 of 23
    bushman4bushman4 Posts: 797member
    We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year," said Randall Stephenson, AT&T chairman and chief executive officer. "We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver -- mobile broadband. I am excited by the opportunities ahead."



    Heres a CEO that doesn't even realize that APPLE is the reason for ATTs revenue trends, double-digit earnings growth and solid cash flow. Its going to be interesting to see what happens when they lose their exclusivity with APPLE.
  • Reply 3 of 23
    chronsterchronster Posts: 1,894member
    there sure are a lot of people who wanted the latest and greatest from apple
  • Reply 4 of 23
    And then there's Nokia which seems to be struggling with profitability - down 40% last quarter! See it here at BBC:



    http://www.bbc.co.uk/news/business-10725887



    The article attributes Google and Apple's entrance into the smartphone category (presumably where the profits are) to the decline, but also notes that the margins on their handsets decreased. If they are stuck with mostly feature phones feeding their profitability then this makes sense.



    Amazing really that Apple was able to start this juggernaut with only ATT on board - and it looks like ATT has been greatly rewarded (financially at least) with taking the risk on an untried and novice handset maker.
  • Reply 5 of 23
    bertpbertp Posts: 274member
    Quote:
    Originally Posted by BUSHMAN4 View Post


    We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year," said Randall Stephenson, AT&T chairman and chief executive officer. "We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver -- mobile broadband. I am excited by the opportunities ahead."



    Heres a CEO that doesn't even realize that APPLE is the reason for ATTs revenue trends, double-digit earnings growth and solid cash flow. Its going to be interesting to see what happens when they lose their exclusivity with APPLE.



    This is called "putting your best foot forward" (sarcasm). I bet that when Apple and AT&T have their next quarterly joint review regarding AT&T service, Apple is going to have some extra leverage to make demands.



    Disclaimer: I do not have an iPhone.
  • Reply 6 of 23
    sacto joesacto joe Posts: 696member
    Quote:
    Originally Posted by AppleInsider View Post


    The iPhone single-handedly brought 860,000 new customers last quarter to wireless provider AT&T, the exclusive carrier of Apple's handset in the U.S...AT&T announced its quarterly earnings Thursday morning, and revealed that it had earned $30.8 billion in revenue in its second fiscal quarter, amounting to $0.61 earnings per share. Helping the company to those numbers was Apple's iPhone, of which the carrier activated a record 3.2 million in the three-month period."



    Hidden in here is an interesting statistic. Note that 8.4 million iPhones were sold this quarter. A little simple math tells us that (8.4-3.2=) 5.2 million iPhones were sold outside the U.S. In other words, Apple is selling more than 1 1/2 times as many iPhones outside the U.S. as it is inside the U.S.



    That is utterly flabbergasting, especially when one considers the potential market that Apple is selling into. As an Apple stockholder who's in for the long run, I couldn't be more pleased!



    BTW, does anyone have any numbers on the quantity of Android phones being sold world-wide?
  • Reply 7 of 23
    cvaldes1831cvaldes1831 Posts: 1,832member
    It's not that flabbergasting. Apple's international sales have outstripped U.S. domestic sales for some time.



    You'll have to search yourself for Android handset sales outside of the United States, but if I recall correctly, Android is mostly popular here in North America with very few handsets being sold abroad.
  • Reply 8 of 23
    bartbuzzbartbuzz Posts: 131member
    Come on Apple bashers! Y'all are late out of the gate.



    I'm glad for AT&T but I'm still holding out for a Verizon iPhone. The question is....can Apple meet the ever increasing demand?
  • Reply 9 of 23
    lkrupplkrupp Posts: 6,691member
    Quote:
    Originally Posted by cvaldes1831 View Post


    It's not that flabbergasting. Apple's international sales have outstripped U.S. domestic sales for some time.



    You'll have to search yourself for Android handset sales outside of the United States, but if I recall correctly, Android is mostly popular here in North America with very few handsets being sold abroad.



    And then add the exclusive factor. Are north americans buying Android handsets because they're all that's available on the other carriers? What happens to that figure when/if the iPhone becomes available on the other carriers? I really think that Android growth is being driven not by the platform's appeal or features but rather by the lack of the iPhone's availability on the other carriers. We won't know the answer, of course, until the iPhone gets to other U.S. carriers.
  • Reply 10 of 23
    bartfatbartfat Posts: 432member
    Quote:
    Originally Posted by lkrupp View Post


    And then add the exclusive factor. Are north americans buying Android handsets because they're all that's available on the other carriers? What happens to that figure when/if the iPhone becomes available on the other carriers? I really think that Android growth is being driven not by the platform's appeal or features but rather by the lack of the iPhone's availability on the other carriers. We won't know the answer, of course, until the iPhone gets to other U.S. carriers.



    Well, the only thing I'm waiting for is a 3G iPhone that works on T-Mobile. Right now I'd rather be stuck with a 2G iPhone on EDGE on T-Mobile than switch to AT&T. Plus the monthly rates aren't all that great on AT&T... actually they're a ripoff.
  • Reply 11 of 23
    dimmokdimmok Posts: 359member
    Juicy Junior....Juicy.
  • Reply 12 of 23
    tydtyd Posts: 1member
    Assuming I am not the only one... the new iPhone4 has been bringing ATT new users for quite a while... Long before it was even named. When my verizon contract ended 10 months ago, I put the family on ATT and went without a phone waiting for the next iPhone release! And now I am very happy! BTW ATT would NEVER get my business otherwise due to poor Customer Service... So Verizon... keep offering Apple more $$$ my contract with ATT ends in 2 years... 8^)
  • Reply 13 of 23
    Well ATT is reaping the benefits of fwd thinking when Apple first came to them with the iPhone.



    ATT: a lot of 'foresight'



    Verizon: a lot of 'foreskin'



    Best
  • Reply 14 of 23
    giosacconegiosaccone Posts: 121member
    AT&T activates record 3.2 million iPhones?????????!?!?!!? Well, now fix network!
  • Reply 15 of 23
    bigdaddypbigdaddyp Posts: 811member
    They managed these numbers in spite of having a sales force that I rank some where below used car salesman and just above IRS agents.



    Despite my recomendation not to visit an AT&T store my wife went to one and bought an iPhone 4. Told the sales agent she wanted 32gb phone and wanted to keep her unlimited plan. After an hour my wife is just about checked out and noticed that they were selling her a 16 gb phone. They had to start all over. After she left the store she reviewed the paper work and noticed they had moved her to the 2 gb monthly plan. After going back the customer rep told her she couldn't keep her plan as the computer wouldn't give her the option. So they called AT&T and the rep told her that it wasn't possible. My wife pointed out that it was an option to keep the plan when using AT&T's website or when ordering from Apple. My wife said they were stunned when she told them thanks but no thanks and she was returning the phone.



    And the best part was that they totally hosed my wife's original iPhone and they felt so bad about it they gave her a ancient nokia so she at least left with a working phone.



    I just can't tell if that was simply incompetance on their part or are intionally pushing customers to that more restricted plan.



    That and other experinces lead me to believe they made that much profit in spite of themselves and because of the iPhone not because of good service or eficient delivery of services.
  • Reply 16 of 23
    dave k.dave k. Posts: 1,306member
    Quote:
    Originally Posted by cvaldes1831 View Post


    It's not that flabbergasting. Apple's international sales have outstripped U.S. domestic sales for some time.



    You'll have to search yourself for Android handset sales outside of the United States, but if I recall correctly, Android is mostly popular here in North America with very few handsets being sold abroad.



    I call BS. Do you have numbers to prove this?



    Google has stated they are activating 166,000 phones a day. My bet is that Android phones are selling a ton worldwide...
  • Reply 17 of 23
    sacto joesacto joe Posts: 696member
    Quote:
    Originally Posted by Dave K. View Post


    I call BS. Do you have numbers to prove this?



    Google has stated they are activating 166,000 phones a day. My bet is that Android phones are selling a ton worldwide...



    And I call DOUBLE-BS. I could claim that the far side of the moon is made of green cheese and have as many "facts" on my side as your statement!



  • Reply 18 of 23
    christophbchristophb Posts: 1,448member
    Quote:
    Originally Posted by bigdaddyp View Post


    They managed these numbers in spite of having a sales force that I rank some where below used car salesman and just above IRS agents.



    .....snip......



    That and other experinces lead me to believe they made that much profit in spite of themselves and because of the iPhone not because of good service or eficient delivery of services.



    Some may laugh but one of the biggest selling points about the iPhone to me is that I don't have to talk to anyone but the Fed-ex guy (he's cool for a Laker fan). From my doorstep to active in 10 minutes and I'd still be in my jammies ([email protected] uniform). Educated consumers should get a discount for cutting out the sales person.



    -Chris
  • Reply 19 of 23
    bagmanbagman Posts: 349member
    Quote:
    Originally Posted by bartfat View Post


    Well, the only thing I'm waiting for is a 3G iPhone that works on T-Mobile. Right now I'd rather be stuck with a 2G iPhone on EDGE on T-Mobile than switch to AT&T. Plus the monthly rates aren't all that great on AT&T... actually they're a ripoff.



    Stuck with Edge - you must like to watch paint dry (or watch nil-nil soccer matches) - That should get the soccer fans dander up.



    Seriously, with ATT, it is quite rare to watch my phone go from 3G to Edge - if it does, I just do something else. Have had to use edge only in remote towns, like West Yellowstone, or some other western towns.



    Usually, my experience has been that, if 3G is tied up, the phone won't even revert to edge, but just stops downloading, or won't even connect at all, and that only happens if there are lots of folks around me using it at the same time (happened at Vail this winter, on the mountain, and sometimes happens at the train station when everyone is online waiting for the next train, or am in San Francisco in certain places. Really quite rare around here in Silly Valley (fortunately) (my take on this is we don't have as many crackpots wearing tinfoil hats, railing about their brains being fried by the cellphone towers - ergo, taking 3 years to get a tower approved in SF). We have our own brand of computer geeks, thank you very much, who don't mind a little ether magic. Might just as well rail against cosmic rays, and try to blot out the sun and stars, but I digress, and don't really want to open up a new thread on perceived cellphone radiation threats - please.
  • Reply 20 of 23
    AT&T, if they'd like to survive the next 5 years, needs to pay attention to improving their network capacity and performance. Spending billions on billing systems, network throttles and bribing congress isn't going to do it.



    AT&T's average speed in Colorado was less than 1.5 megabits download.



    HSDPA supports nearly 10 times that speed. AT&T is mismanaging the Frequencies they lease from the Public via the FCC.

    The FCC needs to demonstrate simply, that they are.. We know that's the case. Density, backhaul, protocol are broken at AT&T because their spending habits are broken.



    AT&T's not going to survive. In fact, if there were more competition, AT&T would be much better off, making tons more money, but fear keeps them from divesting parts of their monopoly.
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