US iPhone sales up 155%, suggesting sales of roughly 3 million Verizon iPhones

Posted:
in iPhone edited January 2014
While Apple executives seemed careful to reveal very little during the company's fiscal Q2 earnings conference call, a new hint at Verizon iPhone sales slipped in the revelation of 150 percent quarterly growth in US iPhone sales over last year.



AT&T just revealed that its iPhone activations were up 33% in the first calendar quarter of 2011, amounting to 3.6 million new iPhones on its network compared to 2.7 million in sales for the same quarter in 2010.



During Apple's own conference call however, chief operations officer Tim Cook noted that iPhone sales "did well everywhere," but drew special attention to dramatic growth in China (where he said iPhone sales were up 250 percent) and in the US (where he noted iPhone sales grew by 150 percent).



Cook said that adding Verizon as a new carrier during the quarter was "key" in that strong US iPhone growth, while also noting that AT&T also "did extremely well."



Using AT&T's activation numbers from the year ago quarter, growth of 150 percent would indicate that American sales reached 6.75 million iPhones. Subtracting the 3.6 million units AT&T activated this quarter indicates that an additional 3.45 million iPhones are either in US inventory awaiting activation, or were sold by Verizon.



Apple indicated that its global channel grew by 1.7 million iPhones to support support new carriers, including Verizon and other major carriers internationally such as SK Telecom in South Korea and Saudi Telecom in Saudi Arabia. Verizon hasn't yet reported how many iPhones it sold in the last quarter (it is expected to do so tomorrow), but based on AT&T's activation numbers and growth figures, it appears Verizon sold in the ballpark of 3 million units since it began offering the iPhone to its own subscribers on February 3, and to the general public a week later.



Sales of about 3 million Verizon iPhones would be inline with analysts' expectations from January that predicted the new carrier would help Apple sell the iPhone to between 9 and 12 million new users.



Growth in iPhone sales through Verizon was also credited for enabling Apple to outpace Android in ad impressions observed by Millennial Media in March. The firm said Verizon iPhones accounted for 8.2 percent of iPhone ad impressions last month. Chitika's mobile ad network reports a 13.6 percent share of iPhone impressions from Verizon's network.



Analyst Ming-Chi Kuo of Concord Securities told AppleInsider in February that discussions with component makers in Apple's supply chain indicated that Apple had prepared 2 million CDMA iPhones in advance to meet demand.



The day Verizon began offering iPhone 4 to its existing customers, company president and chief executive Dan Mead announced, "this was an exciting day. In just our first two hours, we had already sold more phones than any first day launch in our history." The company didn't begin selling the iPhone to the general public until a week later, and online sales through Apple were delayed even further.



A line of about 20 customers stands outsize Louisville, Ken., Verizon store Thursday morning. Photo via Flickr user jasonhiner.



Despite record sales, the staggered launch of iPhone 4 on Verizon's network failed to generate long lines of buyers, resulting in reports that the launch was "not blowout" and leaving some bloggers, such as Dan Frommer of Silicon Alley Insider to coyly remark that lines were "laughably short."
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Comments

  • Reply 1 of 34
    parttimerparttimer Posts: 250member
    And all of those 3 million iPhones (as well as all iPads and synced computers) are being tracked and logged by Apple!



    Steve IS Big Brother!



    Check here to see how your devices are being tracked and logged.
  • Reply 2 of 34
    chabigchabig Posts: 615member
    Quote:
    Originally Posted by Parttimer View Post


    Check here to see how your devices are being tracked and logged.



    Tracked and logged, yes. But not shared with Apple.



    And if you're worried about that, you should see what information your credit card company knows about you! They keep a record of every purchase you make.



    And you phone company logs every phone call!



    And your bank knows how much money you have!



    And your grocery store knows what kind of food you buy, and your HOA probably knows when you enter and exit the gate, and your postman knows who sends you mail, and so on...



    So your phone logs its location, but Apple doesn't know where you've been. They don't 'track' you. Google, on the other hand, is way more frightening. Their business model is built on observation of your behavior.
  • Reply 3 of 34
    solipsismsolipsism Posts: 25,726member
    The first poster has to derail a thread. Teckstud, anyone? :sigh:



    Moving on… It’s one thing to say that people didn’t jump to the Verizon iPhone mid-cycle, but it’s a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.
  • Reply 4 of 34
    gatorguygatorguy Posts: 18,462member
    I thought I remembered seeing that Verizon paid a pretty hefty up-front fee to Apple for the right to sell the iPhone. (anyone got the figures, if there is one?)



    I can't imagine they're pleased with the results so far. No doubt there will be a big spike when the new models are released, but so far it doesn't look like they're getting the huge numbers AI and other some analysts were projecting.
  • Reply 5 of 34
    shenshen Posts: 434member
    Quote:
    Originally Posted by Parttimer View Post


    And all of those 3 million iPhones (as well as all iPads and synced computers) are being tracked and logged by Apple!



    Steve IS Big Brother!



    Check here to see how your devices are being tracked and logged.



    "What?s grating about this reporting is, as usual, the emphasis being placed on the fact that it?s an Apple product. The headlines are all variants of ?Apple is recording your every move!? In fact, there?s no indication that Apple has any way to access this data at all?the only way to get it is to have access to your iPhone or to your iPhone backups, and to know whose iPhone the file belongs to."



    "We introduce a new forensic technique that allows to collect users? past locations on most current Android phones, within a few seconds. It becomes possible to tell where the user was at a given time, or where a phone call took place over the last few hours or days."



    Whatever you say...
  • Reply 5 of 34
    shadashshadash Posts: 470member
    Quote:
    Originally Posted by solipsism View Post


    The first poster has to derail a thread. Teckstud, anyone? :sigh:



    Moving on? It?s one thing to say that people didn?t jump to the Verizon iPhone mid-cycle, but it?s a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.



    Barely, but it is surprising. I think we'll know more with the iPhone 5. And I just bought an iPhone for my son. The Verizon store we went to was stuffed with Android phones, and lots of sales people motivated to sell them.
  • Reply 7 of 34
    tenobelltenobell Posts: 7,014member
    This depends on your expectation. Which Android phone would 3 million new people purchase after its 6 months old?



    No, I don't believe that Verizon is upset about having 3 million subscribers locked into a 2 year contract on a premium plan.



    Quote:
    Originally Posted by Gatorguy View Post


    I can't imagine they're pleased with the results so far. No doubt there will be a big spike when the new models are released, but so far it doesn't look like they're getting the huge numbers AI and other some analysts were projecting.



  • Reply 8 of 34
    genovellegenovelle Posts: 702member
    Quote:
    Originally Posted by chabig View Post


    Tracked and logged, yes. But not shared with Apple.



    And if you're worried about that, you should see what information your credit card company knows about you! They keep a record of every purchase you make.



    And you phone company logs every phone call!



    And your bank knows how much money you have!



    And your grocery store knows what kind of food you buy, and your HOA probably knows when you enter and exit the gate, and your postman knows who sends you mail, and so on...



    So your phone logs its location, but Apple doesn't know where you've been. They don't 'track' you. Google, on the other hand, is way more frightening. Their business model is built on observation of your behavior.





    He could always go to Google who gives away free software so they can have access to your information and data. All your contacts and their phone numbers and email address and locations. Theres even the free Google numbers to monitor your calls to see who you are calling and what you are talking about so they can better sell you to the advertisers who is where they get their money from. If spammer offered to pay you for the names, cell phone numbers, email addresses and emails in your phone would you do it? NO! But to get for something for nothing

    Google gets to be the middleman.
  • Reply 9 of 34
    Quote:
    Originally Posted by Parttimer View Post


    And all of those 3 million iPhones (as well as all iPads and synced computers) are being tracked and logged by Apple!



    Steve IS Big Brother!



    Check here to see how your devices are being tracked and logged.



    Would I be right in assuming that you put your trust more with Google? Because they're "open" and open is always better?



    That would be the same Google as the advertising giant that tracks every click and web page You visit and links it to your Google ID and stores it forever? The same one that gives away lots of free cool toys to lure you into their giant info gathering web and makes billions of dollars per quarter on you?



    Oh
  • Reply 10 of 34
    davidwdavidw Posts: 927member
    Quote:
    Originally Posted by Gatorguy View Post


    I thought I remembered seeing that Verizon paid a pretty hefty up-front fee to Apple for the right to sell the iPhone. (anyone got the figures, if there is one?)



    I can't imagine they're pleased with the results so far. No doubt there will be a big spike when the new models are released, but so far it doesn't look like they're getting the huge numbers AI and other some analysts were projecting.



    That would depend on how many of the estimated 3 million Verizon iPhones are new subscribers versus already Verizon users renewing their contract. And how many already Verizon users on voice only plans upgrading to the more profitable data plans because of the iPhone. Even if only 1/3 of that number are new subscribers, that's 1 million new accounts that they didn't have before. But how many of these would have signed up with Verizon, even if they didn't have the iPhone? Maybe we can figure that out when Verizon releases their new subscribers number for the quarter and compare it to previous quarters. But any way you look at it, Verizon got 3 million users (if the estimate is correct) locked in for 2 years.
  • Reply 11 of 34
    patranuspatranus Posts: 366member
    Quote:
    Originally Posted by Parttimer View Post


    And all of those 3 million iPhones (as well as all iPads and synced computers) are being tracked and logged by Apple!



    Steve IS Big Brother!



    Check here to see how your devices are being tracked and logged.



    LOL - ATT/VZN/TMOB does the exact same thing with tower data.

    Its such a non issue it isn't even funny.
  • Reply 12 of 34
    gatorguygatorguy Posts: 18,462member
    J went back to look at the Jan. 25th Verizon Conference call. It looks like Verizon is actually on track to meet it's stated expectation of at least 11M iPhones sold in 2011. They also indicated they might do much better than that depending on supply. So while probably not doing flips, Verizon management may be comfortable with the pace of sales afterall.



    I guess I spent too much time reading projections from here rather than from Verizon themselves.
  • Reply 13 of 34
    radjinradjin Posts: 165member
    Quote:
    Originally Posted by shadash View Post


    Barely, but it is surprising. I think we'll know more with the iPhone 5. And I just bought an iPhone for my son. The Verizon store we went to was stuffed with Android phones, and lots of sales people motivated to sell them.



    Right now and likely for most of the country through the end of 2012 Verizon will still have the much slower network with limited capability. Like it or not, people want voice/data at the same time as well as the much faster speed AT&T offers. At work they either give you a blackberry or if you opt for another smart phone it's always on the AT&T network. Once Verizon gets their network up to snuff for the whole country, not just big cities, I am sure things will be much different. Data is quickly passing voice in priority.
  • Reply 14 of 34
    Quote:
    Originally Posted by solipsism View Post


    It?s one thing to say that people didn?t jump to the Verizon iPhone mid-cycle, but it?s a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.



    Not surprising to me. Once customers began to compare prices (favor AT&T), features (again favor AT&T- international coverage, speed, multitasking), the mass exodus to Verizon never occurred.
  • Reply 15 of 34
    tbelltbell Posts: 3,146member
    No surprise to me either. The reality is for most people they use their iPhone as a phone for a very small percentage of the over all use. Verizon's big benefit is its voice network, but it lags far behind AT&T on data.



    If you use your phone 80 percent of the time for data related functions, and 20 percent for voice, the company with the stronger data network is better. Moreover, Verizon is even more overpriced then AT&T, and it actively tries to trick money out of "customers."



    Further, if you are on AT&T you are going to be disappointed with the iPhone performance in terms of not being able to use data and voice at the same time on Verizon. Moreover, some of the options aren't as easy to use on the Verizon iPhone. If you are already on Verizon, those things aren't so much of an issue.





    Also, Apple released the iPhone on Verizon not to take sales from AT&T, but to gain new customers. Seems to be working. AT&T also worked hard to retain existing customers by giving free minutes and offering unlimited plans to people who threatened to switch.



    Quote:
    Originally Posted by noexpectations View Post


    Not surprising to me. Once customers began to compare prices (favor AT&T), features (again favor AT&T- international coverage, speed, multitasking), the mass exodus to Verizon never occurred.



  • Reply 16 of 34
    parttimerparttimer Posts: 250member
    Quote:
    Originally Posted by chabig View Post


    if you're worried about that, you should see what information your credit card company knows about you! They keep a record of every purchase you make.



    Not of mine.



    Quote:

    And you phone company logs every phone call!



    Not if that phone is not registered to me.



    Quote:

    And your bank knows how much money you have!



    No.



    Quote:

    And your grocery store knows what kind of food you buy



    No.



    Quote:

    So your phone logs its location, but Apple doesn't know where you've been. They don't 'track' you.



    I guess you didn't read that piece, did you?



    Quote:

    Google, on the other hand, is way more frightening. Their business model is built on observation of your behavior.



    Same difference. And the reason why I don't use Google Search, Google Docs, or clouds when I can avoid them. And when I have to use a cloud, I encrypt before uploading.
  • Reply 17 of 34
    Quote:
    Originally Posted by Parttimer View Post


    Not of mine.



    Not if that phone is not registered to me.



    No.



    No.



    I guess you didn't read that piece, did you?



    Same difference. And the reason why I don't use Google Search, Google Docs, or clouds when I can avoid them. And when I have to use a cloud, I encrypt before uploading.



    My, my, that tin foil hat looks ever so stylish on you, Parttimer.
  • Reply 18 of 34
    stelligentstelligent Posts: 2,680member
    If indeed 3M iP4 were sold by Verizon, it means Apple is dominating the two dominant carriers in the US. If AT&T/TMobile merger is approved, that leaves Spring as the only carrier that sells Android but not iPhones. This just might be the momentum sapper for Android.
  • Reply 19 of 34
    lkrupplkrupp Posts: 5,887member
    [QUOTE=Parttimer;1851561]Not of mine.



    Sounds like you are seriously paranoid delusional. There are medications that can help you. Go see a doctor and soon. Oh wait, if you see a doctor he will know about your paranoia and that will only make you more paranoid. Catch 22 isn't it, as if anybody in the entire world would be interested in what you have encrypted in the cloud.



    By the way did you know that that the government has installed Tesla coils at the North pole in order to achieve mind control over its citizens? It's true, but you already know that, right?
  • Reply 20 of 34
    wigginwiggin Posts: 2,258member
    Quote:
    Originally Posted by solipsism View Post


    It?s one thing to say that people didn?t jump to the Verizon iPhone mid-cycle, but it?s a different story when AT&T is still beating you in iPhone activations despite the Verizon iPhone being officially announced on January 11, 2011.



    Sure it was announced Jan 11th, but it wasn't available until Feb. Even if you theorize that every potential Verizon buyer held off and waited as soon as they heard the Jan 11th announcement, that's still 15% of the quarter that Verizon missed out on. Extrapolate that out and you get to about 3.5 million Verizon iPhones vs ATTs 3.6 million. Add in the fact that not everyone would have waited between Jan 11th and availability, folks thinking they'd just wait until June for the iPhone 5 (oops), and that any potential ATT-to-Verizon switchers are waiting for their contracts to run out, I'd call it a wash.



    Sure, Verizon should have gotten a kick from pent up demand, but ATT also has multi-year head start to build up an upgrading customer base. And let's face it, most people probably couldn't care less about the whole ATT v Verizon debate.



    I'd give it at least another quarter before passing any judgement.
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