AT&T sold 3.7M iPhones in Q2 2012, 5.1M smartphones total
Nearly three quarters of all smartphones sold at AT&T in the second quarter of the company's fiscal 2012 were Apple's iPhone, the carrier announced on Tuesday.
AT&T's quarterly earnings revealed that Apple sold 3.7 million iPhones in the three-month frame, and 22 percent of those customers were new to AT&T. The numbers show that the iPhone represented 73 percent of the total 5.1 million smartphone sales during the quarter.
At the end of the quarter, 61.9 percent, or 43.1 million, of AT&T's postpaid subscribers had smartphones. That's up from 49.9 percent, or 34.1 million, a year earlier.
The numbers show that AT&T sold a million more iPhones than rival Verizon in the same quarter. Verizon announced last week that it sold 2.7 million iPhones in the second quarter, as its smartphone penetration among subscribers reached 50 percent.
Unlike at AT&T, where most of the smartphones activated by the carrier were iPhones, Verizon is mostly dependent on Android-based handsets. Last quarter, Verizon sold 2.9 million smartphones running Google's Android mobile platform.
AT&T announced on Tuesday that it added 1.3 million total wireless net additional customers, and that it saw gains in every customer category. Sales of tablets and tethering plans saw 496,000 net additions, reaching a total of 6.3 million — up more than 50 percent from a year ago.
AT&T also saw its first enterprise revenue growth in more than four years. The company reported 66 cents diluted earnings per share, up from 60 cents in the second quarter of 2011, and consolidated revenues of $31.6 billion, growing 0.3 percent year over year.
"We executed well across the business and posted another strong quarter with growing revenues, expanding margins and double-digit earnings growth," said Randall Stephenson, AT&T chairman and chief executive officer. "Our mobile Internet leadership continues, with solid gains in smartphones and tablets, plus our wireless margins have never been better.
"And most impressive, with this growth, we also achieved our best-ever postpaid wireless churn, which points to the premier experience customers receive on our network. All of these things add to our confidence and enthusiasm looking ahead."
AT&T's quarterly earnings revealed that Apple sold 3.7 million iPhones in the three-month frame, and 22 percent of those customers were new to AT&T. The numbers show that the iPhone represented 73 percent of the total 5.1 million smartphone sales during the quarter.
At the end of the quarter, 61.9 percent, or 43.1 million, of AT&T's postpaid subscribers had smartphones. That's up from 49.9 percent, or 34.1 million, a year earlier.
The numbers show that AT&T sold a million more iPhones than rival Verizon in the same quarter. Verizon announced last week that it sold 2.7 million iPhones in the second quarter, as its smartphone penetration among subscribers reached 50 percent.
Unlike at AT&T, where most of the smartphones activated by the carrier were iPhones, Verizon is mostly dependent on Android-based handsets. Last quarter, Verizon sold 2.9 million smartphones running Google's Android mobile platform.
AT&T announced on Tuesday that it added 1.3 million total wireless net additional customers, and that it saw gains in every customer category. Sales of tablets and tethering plans saw 496,000 net additions, reaching a total of 6.3 million — up more than 50 percent from a year ago.
AT&T also saw its first enterprise revenue growth in more than four years. The company reported 66 cents diluted earnings per share, up from 60 cents in the second quarter of 2011, and consolidated revenues of $31.6 billion, growing 0.3 percent year over year.
"We executed well across the business and posted another strong quarter with growing revenues, expanding margins and double-digit earnings growth," said Randall Stephenson, AT&T chairman and chief executive officer. "Our mobile Internet leadership continues, with solid gains in smartphones and tablets, plus our wireless margins have never been better.
"And most impressive, with this growth, we also achieved our best-ever postpaid wireless churn, which points to the premier experience customers receive on our network. All of these things add to our confidence and enthusiasm looking ahead."
Comments
When are the media gong to report (or surmise on) on facts? Perhaps they can also put pressure on all these guys to start reporting actual sales numbers?
What a joke.
--------
* I can understand that may be true worldwide, especially since the Chinese and Indian markets don't have wide iPhone availability yet, but they are low-margin markets for Android. I am talking about countries like the US.
Also noted: bragging about wireless margins. Which should expand by making up charges like FaceTime.
Yes, for the US, the iPhone outsells Android, or is - at the min - about half of the sales of the carriers it is on, but it isn't on all carriers.
73 percent of the total 5.1M
Thats pretty amazing really, and I think it is up from last Q.
iPhone share in europe is also lower than in the US. Apple really benefits from the way carriers price things in the US.
http://www.ben-evans.com/post/25177869096/iphone-pricing-and-us-market-share
Quote:
Originally Posted by Blastdoor
iPhone share in europe is also lower than in the US. Apple really benefits from the way carriers price things in the US.
Yes, the one price model. In the UK Android phones are visibly cheaper because the contracts are cheaper, and people know the difference between a "free "3GS, or Android phone, and a "free" 4S on contract, as there would be more cost per month. So people are used to that. And there are, of course, cheaper free phones than the 3GS.
This leaves Apple with a price Umbrella, however they can fix that by not discontinuing the 3GS.
Quote:
Originally Posted by Mac Voyer
AT&T has been desperately trying to create and prop up other hero devices in the form of the Storm, Pre 2, and many others. Will someone please tell me again why they are trying so hard to bite the hand that feeds them>
Because Apple have them over a barrel. Its not healthy for them.
I think the iPhone slid just a tad below 50% on Verizon this quarter.
But I will be dumping post-paid and just getting the phone unsubsidized this time around, if I can make it work.
I think the numbers from Verizon and ATT should mean the carriers cutting the subsidies for the iPhone stories should be put to rest for a while. Churn is low since ATT is keeping its iPhone customers. As asdasd says, Apple has them over a barrel right now. It is a nice place for Apple to be. But it may not be as unhealthy for the carriers if they can reduce churn and if their wireless margins continue to improve(I wonder if margins were broken down by platform-iOS vs Android-and if it was-whether the numbers would ever see the light of day). The issue for the carriers is if another carrier comes up with a low priced plan that causes many users to jump ship.
Because selling other phones is more profitable.
Sure, Android's share is likely larger in the EU than it is in the US. But that still does not mean it is larger -- or that much larger -- than that of the iPhone. Certainly not in the proportions that breathless fandroids are hyperventilating about.
In any event, the article that you cite shows no data to back up anything at all about Android share (it only talks about "other smartphone" relative to iPhone).
Quote:
Originally Posted by dasanman69
Because selling other phones is more profitable.
I don't think this is the reason why ATT has been pushing other phones. I think they don't want to be dependent on Apple and the iPhone because it gives the carrier less leverage in any negotiation. But as was reported, wireless margins are up at ATT. One reason is less churn, and a good part of that is loyalty of iPhone users. The other is that, and I believe I have seen it mentioned in other articles, that Apple mobile users do more shopping and probably use more data than Android users. Once your network is big enough to handle the traffic and you don't need to keep on adding infrastructure to get new users, adding new users becomes much more profitable.
Question is, why do you even care? Does either scenario benefit or hurt you in any way?
Question for 500 points.
It seems that every quarter, a gigantic amount of each carriers sales go to the iPhone. How is Android the number 1 again?
I may be missing something but at a quick glance, it just doesn't make sense.
And how do you think they got that higher profit margin? Android phones cost less to subsidize. What other shopping are iPhone users doing with ATT other than their phone plans?
Because you're not taking into consideration the multitude of smaller carriers that do not have the iPhone and almost only sell android devices.