AT&T Announces Record 3.2 Million iPhones Activated in Quarter

[MacRumors]

AT&T today released its earnings report for the third quarter of 2009, and among the highlights was the activation of 3.2 million iPhones, the highest quarterly total in history. The number tops the 2.4 million iPhones activated in the third quarter of 2008 after the release of the iPhone 3G.

Also of note, iPhones accounted for an astounding 74% of total AT&T postpaid activations of "integrated devices" offering either a physical or virtual keyboard in addition to voice capabilities during the quarter. Nearly 40% of iPhone activations were from customers new to AT&T, a figure consistent with previous quarterly performances.

- Strongest Integrated Device Quarter To Date. Postpaid 3G integrated wireless devices added to AT&T's network in the third quarter totaled 4.3 million, the largest quarterly increase in the company's history. Over the past year, the number of postpaid integrated devices on AT&T's network more than doubled, and at the end of the third quarter, 41.7 percent of AT&T's 63.4 million postpaid subscribers had integrated devices. The average ARPU for integrated devices on AT&T's network continues to be 1.8 times that of the company's nonintegrated-device base.

- Record iPhone Activations. AT&T's third-quarter integrated device growth included 3.2 million iPhone activations, also the company's largest quarterly total to date, with nearly 40 percent of the activations for customers who were new to AT&T.

Overall, AT&T experienced a net gain of two million wireless subscribers, the highest such third-quarter additions in company history, and also reduced customer churn levels to record lows.

Apple reported earlier this week as part of a stellar earnings announcement that it had sold a total of 7.4 million iPhones during the quarter.

Article Link: AT&T Announces Record 3.2 Million iPhones Activated in Quarter

[Compile 'em all]

Nice, now how about you upgrade your network so it can handle these phones properly?

[Michael73]

Proving once again that people are willing to overlook carrier issues in favor of a better hardware and OS experience. No surprise here...

The really good thing though is that this continues to give Apple more and more leverage over AT&T in negotiations for contract extensions, exclusivity and network upgrades.

[kingtj]

I was trying to decide if I should vote this story "positive" or "negative" and my brain almost exploded.

On the plus side, more iPhones were sold, so that's good for Apple and presumably means more iPhone apps will be written for me to use on MY iPhone. It further validates my purchasing decision as a good one, too.

On the downside, that further increases the odds that the evil exclusive Apple and AT&T contract deal will continue long into the future. It means the same lousy company that assisted the government in illegally eavesdropping on U.S. citizens makes even MORE profit providing inferior service. And it means less chance of seeing any kind of price break on things like a "tethering plan" down the road, or giving everyone unlimited SMS messaging without paying the extra monthly fee. (If sales are that good, why change what's working for AT&T, right?)

[*LTD*]

No wonder Verizon's so desperate.

[ladysman]

Originally Posted by Compile 'em all

Nice, now how about you upgrade your network so it can handle these phones properly?

Bingo, their advertising needs to say MOST dropped calls not fewest.

[AFPoster]

I love how we make AT&T so much money and bring so many people to them but yet they have horrible service EVERYWHERE and they can't even upgrade their systems for Tethering like they promised. Did I also mention they never come out with upgrades like they're supposed to when Apple tells them too. Once Apple switches to Verizon let alone all other carriers everyone is going to leave AT&T and they will become bankrupt, I can't wait for that day with the way AT&T works.

[dwsolberg]

If ATT continues this kind of success in selling iPhones, I'm afraid it will bring their network down. Success = failure. Odd.

[jav6454]

Now if would just move their 3G network speeds from the 1900MHz to 850MHz it would be sweet.

I already enjoy no dropped calls, fast 3G and great coverage... however, when I'm inside buildings with thick walls or deep inside a big building I can notice the 1900MHz frequencies screaming at me, "I'm not good here!!!"

[ucfgrad93]

Originally Posted by dwsolberg

If ATT continues this kind of success in selling iPhones, I'm afraid it will bring their network down. Success = failure. Odd.

Strange but true. I think that at&t needs to be reinvesting heavily into their network.

[stagi]

Originally Posted by Compile 'em all

Nice, now how about you upgrade your network so it can handle these phones properly?

Do doubt, would be nice to see them reinvest some of this into the network

[seedster2]

That's a great Q3! Now if they will only get their infrastructure up to date in the NY Metro area up to snuff. These guys are living off the iPhone wave

Anyone know how Verizon faired?

[WannaGoMac]

That would explain why lately I can barely keep a call connected, and how my voicemails have arrived hours later! Location: (Supposedly a great coverage one) DC

[CoreyMac]

As solid as the iPhone 3G has been for me, I think i'll be hanging it up and giving the HTC HD2 a try when my contract expires in April. That thing is a beast

[Hmac]

Yeah, those guys at Verizon are some kind of geniuses all right....

[MarlboroLite]

Good for AT&T as a corporation.

But people are being ripped off. I lived in France for a year and a half until this month when I returned to the US and I had an iPhone over there with Orange and my plan was €39 a month which included 240 minutes talk (keep in mind ALL incoming calls are free) a €3 a month discount for being under 26, unlimited texts and the unlimited data. Everything worked, always had service because european GSM is more developed than AT&T's. Oh and tethering and MMS worked ON THE DAY it was released. Not only that but the phone at the time cost me €99 when the same 8GB 3G was going for $199 under contract by AT&T. It was actually affordable to own an iPhone. And after competition was allowed with the iPhone opened to the 2 other carriers SFR and Bouygues the plans were lowered in price.

The cheapest plan you can get here is $70 minus taxes and if you want unlimited texts that's an extra $20. So for a similar plan in the US I would have to pay over $100 a month after taxes. That's pretty outrageous, which is why I decided to sell my legally unlocked iPhone here (see Orange did it once I left, but AT&T won't even do that even after your 2 years are up) and stay with Verizon. I did not want to give up using my iPhone because it is the best phone I have ever used, but I cannot justify paying over $100 a month for the plan and living in New York I know how awful coverage is by AT&T here. Yes Verizon has similar data plans etc, but at least they work most of the time. With AT&T you are getting ripped off and charged for a service that doesn't work.

Glad for all of you who can afford $100 a month and get get good coverage but really the iPhone would be much better served if it was allowed in other carriers for some price competition. Why does it have to be so expensive in the US and so cheap in Europe?

[mattster16]

Originally Posted by AFPoster

I love how we make AT&T so much money and bring so many people to them but yet they have horrible service EVERYWHERE and they can't even upgrade their systems for Tethering like they promised. Did I also mention they never come out with upgrades like they're supposed to when Apple tells them too. Once Apple switches to Verizon let alone all other carriers everyone is going to leave AT&T and they will become bankrupt, I can't wait for that day with the way AT&T works.

1. I have excellent AT&T coverage where I live, I've never had an issue. Signal is always great and the 3G speeds are very fast.

2. When did AT&T promise tethering?

3. Why do you assume Apple will be switching to Verizon? There is no evidence this will happen anytime in the near future and some would say there is evidence against it.

[davidbrummy]

For people who use AT&T this is terrible news. I get a lot of failed calls in San Francisco especially during peak hours.

Roll on iPhone on Verizon.

[taparker]

So where is the extra revenue going? The network sucks where I live. Granted, I am not in a heavily populated metro,but I still want some kind of 3G coverage. I tell you, once Verizon has the iPhone, I will switch.

[objc]

Originally Posted by kingtj

e. It means the same lousy company that assisted the government in illegally eavesdropping on U.S. citizens makes even MORE profit providing inferior service.

You act like there are no other choices in evil, greedy companies out there. I'm tired of people acting like Verizon doesn't exist. Verizon may not have the iPhone, but in its defense, I would like to point out that Verizon is also a lousy company, and they also assisted the government in illegally eavesdropping on U.S. citizens. Please don't downplay Verizon's evilness just because they don't have the iPhone. They are every bit as evil as AT$T! You do have a choice in evil cell phone companies!

[MacFly123]

So does anyone know how many total iPhone users AT&T has now and what percentage that is of their total subscribers?

[normwood]

Originally Posted by AFPoster

I love how we make AT&T so much money and bring so many people to them but yet they have horrible service EVERYWHERE and they can't even upgrade their systems for Tethering like they promised. Did I also mention they never come out with upgrades like they're supposed to when Apple tells them too. Once Apple switches to Verizon let alone all other carriers everyone is going to leave AT&T and they will become bankrupt, I can't wait for that day with the way AT&T works.

Sorry, you are generalizing like crazy. I get great signal and service in my area with AT&T. I have NEVER had a dropped call that I can recall in 4 years with AT&T.

I'm pretty sure that with the new round of ads that Verizon is running they have burned the bridge to any chance of them ever getting the iPhone.

You need to take your crystal ball into the shop to get it worked on....it's letting you down big-time.

Steve

[maconspace]

Now that we've bought the iPhone and increased your profits, increase your coverage AT&T!

[philbeeney]

Originally Posted by MarlboroLite

Good for AT&T as a corporation. But people are being ripped off.

Why does it have to be so expensive in the US and so cheap in Europe?

Gordon Gecko sums it all up in three words: "Greed is good".

[Samuriajackon]

Originally Posted by philbeeney

Gordon Gecko sums it all up in three words: "Greed is good".

Where is tethering support!