Given that the iPhone typically represents 70-80% of AT&T's smartphones, the carrier's record numbers for the quarter so far bode well for Apple.
WHAT?? News to me!! Where are the numbers?
It's a rough guess. Last quarter, AT&T said they sold 6.1 million smartphones. They also happened to activate 4.7 million iPhones.
So reporters just do a 4.7/6.1 and come with 77%... or this case, "70%-80%", which is probably still a bit on the high side.
The reason why people use a vague result is because activations won't equal sales. A good number of those activations are for previously owned phones, either passed to another family member or sold on eBay etc.
Apple seems to like carriers to report activations instead of sales, because the numbers look so much better that way.
I believe that Verizon was the first choice but wanted their normal level of control to load their crapware onto the devices, and that's what caused Apple to move to their next choice of Cingular/AT&T.
Apple reportedly wanted both Cingular and Verizon.
Verizon said that they didn't make a deal with Apple because:
1) Apple wanted a cut of the monthly cell plan fees.
2) Apple wanted to be in control of all iPhone related customer service.
3) Apple wanted to cut out Verizon's partners, such as Walmart and Best Buy.
Ironically, a year later, in 2008, Apple stopped getting a monthly royalty and switched to the usual carrier subsidy method.
And iPhones are now sold by the very places Apple refused to allow.
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