Apple's iPhone accounted for 84% of AT&T's smartphone activations in Q4 [u]
Second-largest U.S. wireless carrier AT&T on Thursday announced it activated a record 8.6 million iPhones, accounting for 84 percent of the telecom's total 10.2 million smartphone sold, for the fourth quarter of 2012.
Update: AT&T pointed out that the 8.6 million iPhone number represents activations, not sales, meaning the handset may not have accounted for 84 percent of overall sales. The metric is likely to be in close to 84 percent, but a definitive proportion cannot be presented as a device-by-device sales breakdown was not disclosed.
The announcement was made as part of the company's fourth quarter earnings, which saw a record 10.2 million smartphone sales, the most ever by any domestic carrier, and an addition of over 780,000 new subscribers. Overall, smartphones now make up 89 percent of AT&T's postpaid sales.
For the holiday quarter, AT&T activated nearly 2.5 million more iPhones than No. 1 U.S. carrier Verizon, which saw Apple's handset account for almost two thirds of its 9.8 million smartphone sales. According to AT&T, there were a record number of Android activations over the three-month period, adding to the company's total smartphone user base that now stands at 47.1 million, a quarter-on-quarter boost of 2.5 million users.
AT&T posted a loss for the quarter ending in December with net losses at $3.9 billion or 68 cents per share, down from a loss of $6.7 billion or $1.12 per share from the year ago period. Revenues were up at $32.6 billion, up 0.2 percent year-over-year and up 2.8 percent excluding Advertising Solutions and adverse impacts from Superstorm Sandy.
Update: AT&T pointed out that the 8.6 million iPhone number represents activations, not sales, meaning the handset may not have accounted for 84 percent of overall sales. The metric is likely to be in close to 84 percent, but a definitive proportion cannot be presented as a device-by-device sales breakdown was not disclosed.
The announcement was made as part of the company's fourth quarter earnings, which saw a record 10.2 million smartphone sales, the most ever by any domestic carrier, and an addition of over 780,000 new subscribers. Overall, smartphones now make up 89 percent of AT&T's postpaid sales.
For the holiday quarter, AT&T activated nearly 2.5 million more iPhones than No. 1 U.S. carrier Verizon, which saw Apple's handset account for almost two thirds of its 9.8 million smartphone sales. According to AT&T, there were a record number of Android activations over the three-month period, adding to the company's total smartphone user base that now stands at 47.1 million, a quarter-on-quarter boost of 2.5 million users.
AT&T posted a loss for the quarter ending in December with net losses at $3.9 billion or 68 cents per share, down from a loss of $6.7 billion or $1.12 per share from the year ago period. Revenues were up at $32.6 billion, up 0.2 percent year-over-year and up 2.8 percent excluding Advertising Solutions and adverse impacts from Superstorm Sandy.
Comments
Too bad Android is "Winning!"
Wonder how many Android manufacturers are lying about their numbers…
What exactly does the one with the most money win?
I will say 84% is very impressive. Phones like HTC One X don't stand a chance on AT&T.
The outrageous prices for a land-line ($10/mo for caller ID option) caused me to go wireless only. When comparing rates for TV services with Dish, DirecTV, Time Warner Cable and U-Verse, U-Verse was much more expensive than any other option. DSL prices for crummy 6Mbps service is on par with 20Mbps cable internet.
Yet somehow they are losing money? That makes me question their accounting.
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Originally Posted by JollyPaul
AT&T posted a loss? With perpetually skyrocketing rates for land lines, DSL, U-Verse TV and wireless plans, how is it they are losing money?
The outrageous prices for a land-line ($10/mo for caller ID option) caused me to go wireless only. When comparing rates for TV services with Dish, DirecTV, Time Warner Cable and U-Verse, U-Verse was much more expensive than any other option. DSL prices for crummy 6Mbps service is on par with 20Mbps cable internet.
Yet somehow they are losing money? That makes me question their accounting.
I'm sure it's just a paper loss.
Quote:
Originally Posted by AppleInsider
Second-largest U.S. wireless carrier AT&T on Thursday announced it activated a record 8.6 million iPhones, accounting for over 84 percent of the telecom's total 10.2 million smartphone sales, for the fourth quarter of 2012
Again, activations cannot be divided into sales to come up with such a percentage. They're different math units.
For example, using the predicted Verizon contribution that AI published in this thread, (which predicted 56 million iPhones sold), but using the actual figure of 48 million iPhones sold, we can estimate that 15% of Verizon's recent activations were previously owned iPhones... which is dead center of the historical 10% to 20% I have written about before.
AT&T usually has even higher used phone activation percentages, because of having more years of users to upgrade. But even if we assume only 15% were used, that would make the new phone sales more like 8.6 million x .85 = 7.3 million, or 72%. Still amazingly high, but more realistic.
Edit: AT&T even pointed the unit difference out to MacRumors in this thread, which tried to used the same incorrect math.
Edit 2: Someone else pointed out that AT&T activations would also include phones sold at Apple, Best Buy, Radio Shack, Walmart, etc. Which means AT&T sales would be even lower. At least, if they were unlocked phones.
Is this a serious question? What do you think the goals of a for profit company are? The aren't reporting gold stars and brownie points to the SEC and shareholders. It ultimate goal is money. Nothing more, nothing less.
This news stinks!
What? Are you telling me that Apple's iPhone only accounted for 84% of all smartphone sales on AT&T? Wait a sec, that means that 16% of all phones sold were not Apple! Holy cow, that is disastrous news! Apple could do better than this! Excuse me, because I'm going to have to go and short AAPL right now. It's only a matter of time before Apple crumbles completely. I don't think that I've ever seen a company perform so poorly before.
delete
Might even out? You lost me. What would be uneven about it?
As for devices not sold to customers via an AT&T employee does that matter if it's sold with a subsidy and contract that then requires AT&T to pay Apple for the agreed upon difference per their contract? Using your logic i sounds like you're saying Apple doesn't get to count a Macs sale if they are sold to the customer Amazon, Best Buy, etc.
The OP makes it seem like there's an endgame and there isn't. Making the most money is fine but it's a constant race, the loser doesn't pack up his bags and goes home nor is taken out back and shot.
If they do count phones sold at partners, why would they count only iPhones from partners and not Android or other phones sold at partners? 84% of the total means 84% of the total.
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Originally Posted by SolipsismX
Might even out? You lost me. What would be uneven about it?
Actually, I just edited that out, because it doesn't factor into the calculations. Sorry for the confusion.
Quote:
As for devices not sold to customers via an AT&T employee does that matter if it's sold with a subsidy and contract that then requires AT&T to pay Apple for the agreed upon difference per their contract? Using your logic i sounds like you're saying Apple doesn't get to count a Macs sale if they are sold to the customer Amazon, Best Buy, etc.
In other words, if Best Buy sells someone an iPhone with an AT&T contract, then AT&T counts it as their sale? And Best Buy does not?
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Originally Posted by jragosta
If they do count phones sold at partners, why would they count only iPhones from partners and not Android or other phones sold at partners?
The total sales number was for all smartphones.
The only activations number that AT&T gave was for the iPhone.
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84% of the total means 84% of the total.
Well, no. Even AT&T pointed out that the units are totally different. See the link above. You can't mix one number which is new and old (activations), with just new (sales).
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Originally Posted by Rogifan
Whatever the actual sales number was its obvious it was a record and the majority of AT&T sales. Congrats Apple.
Yep, most likely.
I don't know if they count it as a sale but it's certainly an activation on their network and they are certainly paying Apple for that sale.
Quote:
Originally Posted by Apple ][
This news stinks!
What? Are you telling me that Apple's iPhone only accounted for 84% of all smartphone sales on AT&T? Wait a sec, that means that 16% of all phones sold were not Apple! Holy cow, that is disastrous news! Apple could do better than this! Excuse me, because I'm going to have to go and short AAPL right now. It's only a matter of time before Apple crumbles completely. I don't think that I've ever seen a company perform so poorly before.
I agree, only 84%? Those Wall Street Financial Geniuses were right. Thank God we have them around to let us know how horrible Apple is doing. I don't think I'll ever buy another Apple product because that's what Wall Street wants me to do. I'm going to move on to the next big thing. I think Wall Street said it was Kodak.