AT&T activates record 5.2 million iPhones, promotes non-Apple devices

Posted:
in iPhone edited January 2014
AT&T on Thursday reported a record third quarter, posting revenue of $31.58 billion, thanks in large part to its best-ever total of 5.2 million iPhone activations. But the company also made it a point to specifically promote other, non-Apple handsets in its lineup as rumors of a Verizon iPhone swirl.



The totals reported Thursday handily bested the 3.2 million iPhones AT&T activated in the previous quarter, when the iPhone 4 first went on sale. AT&T's sales of 5.2 million iPhones should come as no surprise to anyone who followed Apple's earnings report on Monday, when the handset maker revealed it had sold 14.1 million iPhones in the same time period.



The iPhone also helped to drive new customers to AT&T, as 24 percent of those who bought an Apple handset during the quarter were new to the carrier. In all, AT&T sold 8 million postpaid "integrated" devices, or smartphones.



"This was a terrific mobile broadband quarter," said Randall Stephenson, AT&T chairman and chief executive officer. "A record number of customers signed new two-year contracts and integrated device sales outpaced our previous best by a wide margin. Wireless revenues continue to grow, churn is reaching record low levels, and postpaid ARPU increased for the seventh straight quarter."



But as noted by John Paczkowski of Digital Daily, AT&T also excluded the iPhone, by far its best-selling product, from a presentation slide touting the company's "Mobile Broadband Leadership." Products from Google Android, Research in Motion BlackBerry, HP webOS, Microsoft Windows Phone 7, and Nokia Symbian were shown, as well as an Amazon Kindle.







While the exclusion of the iPhone may have simply been done in an effort to promote the carrier's other devices, the timing is suspect, as Apple is strongly rumored to release a Verizon-compatible iPhone early next year. Verizon is AT&T's chief rival and is also the largest wireless carrier in the U.S.



Because of those widespread and recurring reports, many believe that it is now an inevitability that AT&T will lose exclusivity of the iPhone. The carrier has been Apple's sole wireless partner in the U.S. since the handset launched in 2007.
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Comments

  • Reply 1 of 73
    Quote:
    Originally Posted by AppleInsider View Post


    AT&T But the company also made it a point to specifically promote other, non-Apple handsets in its lineup as rumors of a Verizon iPhone swirl.



    I hope the rumors don't swirl down the toilet. Thought we might see an announcement yesterday. Don't really care myself. I just want to see everybody here that said it could not be done proven WRONG! Ahh hah hah hah
  • Reply 2 of 73
    Quote:
    Originally Posted by Blackintosh View Post


    I hope the rumors don't swirl down the toilet. Thought we might see an announcement yesterday. Don't really care myself. I just want to see everybody here that said it could not be done proven WRONG! Ahh hah hah hah



    I'd love to know a few things.



    1. Why you thought for one second that they'd announce an iDevice at a Mac event.



    2. Who these people are who say a CDMA/LTE iPhone can't be done so that I can laugh at them as well. I just don't think anyone would say that.
  • Reply 3 of 73
    shadashshadash Posts: 470member
    Quote:
    Originally Posted by AppleInsider View Post


    Because of those widespread and recurring reports, many believe that it is now an inevitability that AT&T will lose exclusivity of the iPhone. The carrier has been Apple's sole wireless partner in the U.S. since the handset launched in 2007.



    That 3-1/2 years will go down as a huge wasted opportunity on AT&T's part. While raking in billions of dollars from the iPhone, they couldn't manage to get their network anywhere close to Verizon's. What a joke.
  • Reply 4 of 73
    mjtomlinmjtomlin Posts: 1,793member
    AT&T has never promoted the iPhone. The only place the iPhone is ever mentioned is in the stores and on their website. I'm sure this will be the same with Verizon. I don't think Apple wants to leave promotion up to the carrier, would probably mean giving up some control over the device as well.
  • Reply 5 of 73
    shadashshadash Posts: 470member
    Quote:
    Originally Posted by Tallest Skil View Post


    I'd love to know a few things...



    2. Who these people are who say a CDMA/LTE iPhone can't be done so that I can laugh at them as well. I just don't think anyone would say that.



    Have you been on the boards lately? No one is saying it "can't" be done. But a lot of people are saying it "won't" be done.



    Apple and Verizon will never see eye to eye because both are run by headstrong individuals.



    Apple won't accept the Verizon logo and VCast crap on their phone.



    The 5-year contract with AT&T.



    Verizon said no to Apple in 2007, so Apple is mad at them.



    Apple will only release a GSM phone.



    CDMA is dead, so Apple will wait till LTE is more widespread, in 2012 (which lines up nicely with the 5-year contract).



    Finally, what is most likely in my opinion: They're pissed they bought an iPhone on AT&T when the people who waited 6 months will be able to actually use their phone as a phone.
  • Reply 6 of 73
    The reason the iPhone isn't included in the slide is Apple has complete control over the marketing of the iPhone. Period.
  • Reply 7 of 73
    Quote:
    Originally Posted by shadash View Post


    Have you been on the boards lately? No one is saying it "can't" be done. But a lot of people are saying it "won't" be done.



    If I were you, I'd read what I posted again. I never said it couldn't be done. I asked to see who had said it couldn't be done.



    Quote:

    Apple and Verizon will never see eye to eye because both are run by headstrong individuals.



    Ah, see, you're saying never.



    Quote:

    Apple won't accept the Verizon logo and VCast crap on their phone.



    That's a given.



    Quote:

    The 5-year contract with AT&T.



    Is null and void.



    Quote:

    Verizon said no to Apple in 2007, so Apple is mad at them.



    2006. And apparently they're not mad enough to disallow Verizon selling iPads.



    Quote:

    Apple will only release a GSM phone.



    *snort* Okay. Sure. So no LTE, then.



    Quote:

    CDMA is dead, so Apple will wait till LTE is more widespread, in 2012 (which lines up nicely with the 5-year contract).



    Apple might even wait for LTE-Advanced at this point, given that WiMAX and Verizon's current LTE can't legitimately be called 4G.
  • Reply 8 of 73
    samabsamab Posts: 1,953member
    Quote:
    Originally Posted by shadash View Post


    Apple and Verizon will never see eye to eye because both are run by headstrong individuals.



    They are all run by headstrong individuals who care more about money.



    If given enough money, Verizon CEO will dress up like one of those island of misfit toys on stage with Steve Jobs --- just like Intel CEO showing up on stage with Steve Jobs with that bunny.
  • Reply 9 of 73
    shadashshadash Posts: 470member
    Quote:
    Originally Posted by Tallest Skil View Post


    If I were you, I'd read what I posted again. I never said it couldn't be done. I asked to see who had said it couldn't be done.



    To be clear: I am not saying these people are right. I think they're full of it. But their arguments against a CDMA iPhone are all over the boards. Search for "Verizon" on AI and look at the posts. At least half use some form of what I posted before to argue why a Verizon iPhone is never, ever going to happen.
  • Reply 10 of 73
    Quote:
    Originally Posted by samab View Post


    They are all run by headstrong individuals who care more about money.



    If given enough money, Verizon CEO will dress up like one of those island of misfit toys on stage with Steve Jobs --- just like Intel CEO showing up on stage with Steve Jobs with that bunny.



    Exactly.



    Don't think for a moment that the VZW shareholders are thrilled with all that the iPhone is doing for ATT. If the iPhone finds its way to all carriers but Verizon, I can assure you the Verizon CEO won't have his job for too long. I mean, even now, Apple was able to drive over a million subscribers to ATT.
  • Reply 11 of 73
    samabsamab Posts: 1,953member
    Quote:
    Originally Posted by addicted44 View Post


    Exactly.



    Don't think for a moment that the VZW shareholders are thrilled with all that the iPhone is doing for ATT. If the iPhone finds its way to all carriers but Verizon, I can assure you the Verizon CEO won't have his job for too long. I mean, even now, Apple was able to drive over a million subscribers to ATT.



    Actually Verizon's share price has done BETTER than AT&T's share price since June 2007 when the iphone was launched.



    The iPhone has done NOTHING to AT&T's bottomline.
  • Reply 12 of 73
    Quote:
    Originally Posted by shadash View Post


    That 3-1/2 years will go down as a huge wasted opportunity on AT&T's part. While raking in billions of dollars from the iPhone, they couldn't manage to get their network anywhere close to Verizon's. What a joke.



    I disagree.



    3 1/2 years ago, AT&T started with the Edge network....real speed around 170k. Since then, they have upgraded to 3G/GSM and now can run at theoretical 7.2MBS.



    3 1/2 years ago, Verizon had CDMA....real speed around 300k. Today, Verizon has the same CDMA, same slow speed, same missing features (no concurrent voice/data access).



    CDMA is dead....which is why Verizon is trying to rollout 4G as fast as they can. All the latest smart phones start with GSM (the global standard)....CDMA is the after thought.
  • Reply 13 of 73
    samabsamab Posts: 1,953member
    Quote:
    Originally Posted by noexpectations View Post


    I disagree.



    3 1/2 years ago, AT&T started with the Edge network....real speed around 170k. Since then, they have upgraded to 3G/GSM and now can run at theoretical 7.2MBS.



    3 1/2 years ago, Verizon had CDMA....real speed around 700k. Today, Verizon has the same CDMA, same slow speed, same missing features (no concurrent voice/data access).



    CDMA is dead....which is why Verizon is trying to rollout 4G as fast as they can. All the latest smart phones start with GSM (the global standard)....CDMA is the after thought.



    Ev-do serves its purpose --- for the duration of its useful life.



    UTMS has been around for 10 years with voice and data at the same time --- nobody actually cares about it until the carriers are beginning to migrate to 4G.
  • Reply 14 of 73
    shadashshadash Posts: 470member
    Quote:
    Originally Posted by noexpectations View Post


    I disagree.



    3 1/2 years ago, AT&T started with the Edge network....real speed around 170k. Since then, they have upgraded to 3G/GSM and now can run at theoretical 7.2MBS.



    3 1/2 years ago, Verizon had CDMA....real speed around 300k. Today, Verizon has the same CDMA, same slow speed, same missing features (no concurrent voice/data access).



    CDMA is dead....which is why Verizon is trying to rollout 4G as fast as they can. All the latest smart phones start with GSM (the global standard)....CDMA is the after thought.



    Comparing "theoretical" GSM speeds to "real speeds" of CDMA isn't really fair is it?



    EV-DO Rev. A speeds are theoretical download speeds of 4.2 Mbit/s and upload speeds of up to 1.8 Mbit/s and typically are 1 Mbit/s down, and 500 Kbit/s up. (wikipedia)



    And what's the point of having a fast network if you can't get a good signal?
  • Reply 15 of 73
    You would think that ATT would mention Apple regardless if they are loosing exclusivity. Apple is still their number 1 money making smart phone and you have to show some respect. They are acting as if they are loosing Apple all together next year.
  • Reply 16 of 73
    sockrolidsockrolid Posts: 2,788member
    Quote:

    AT&T on Thursday reported a record third quarter, posting revenue of $31.58 billion...



    Might be their best quarter ever. Because they will lose subscribers the instant a Verizon iPhone is available. Not that I give a crap about the Verizon aka "The King of Lock-in," but AT&T's iPhone honeymoon is over. It's going to be an "open relationship" now, and AT&T and Apple are already acting like a couple getting tired of keeping their breakup a secret.
  • Reply 17 of 73
    solipsismsolipsism Posts: 25,726member
    AT&T now has 92.8 million subs, which is more than Verizon had on it’s last results for the June quarter with 92.1 million. It’s possible that AT&T might be top dog tomorrow, just squeaking by Verizon in net adds. Of course, even if that is the case it won’t last long but at least it’ll be a slight victory for the Holidays. It’ll be funny to see that drop if they do lose the exclusivity come next year.
  • Reply 18 of 73
    samabsamab Posts: 1,953member
    Quote:
    Originally Posted by solipsism View Post


    AT&T now has 92.8 million subs, which is more than Verizon had on it?s last results for the June quarter with 92.1 million. It?s possible that AT&T might be top dog tomorrow, just squeaking by Verizon in net adds. Of course, even if that is the case it won?t last long but at least it?ll be a slight victory for the Holidays. It?ll be funny to see that drop if they do lose the exclusivity come next year.



    Verizon has something like 99.9 million subscribers.
  • Reply 19 of 73
    samabsamab Posts: 1,953member
    Quote:
    Originally Posted by SockRolid View Post


    Might be their best quarter ever. Because they will lose subscribers the instant a Verizon iPhone is available. Not that I give a crap about the Verizon aka "The King of Lock-in," but AT&T's iPhone honeymoon is over. It's going to be an "open relationship" now, and AT&T and Apple are already acting like a couple getting tired of keeping their breakup a secret.



    There was never a iphone honeymoon at AT&T. Verizon's share price has done better than AT&T's share price since June 2007.
  • Reply 20 of 73
    shadashshadash Posts: 470member
    Quote:
    Originally Posted by samab View Post


    There was never a iphone honeymoon at AT&T. Verizon's share price has done better than AT&T's share price since June 2007.



    That's because Verizon is a well-run company. I wonder how much worse AT&T would have done without the iPhone?
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