iPhone Activations Drop 43% at AT&T, But Represent 60% of Total Postpaid Phone Sales

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Apr 24, 2012.

  1. MacRumors macrumors bot

    MacRumors

    Joined:
    Apr 12, 2001
    #1
    [​IMG]


    AT&T today announced its financial results for the first quarter of 2012, revealing that it activated 4.3 million iPhones during the quarter. The number marks a substantial drop from the 7.6 million iPhones activated last quarter for the launch of the iPhone 4S, but still easily tops Verizon's 3.2 million iPhones sold during the first quarter.
    While AT&T's activations and sales can not quite be directly compared because activations includes used devices being reactivated on new accounts, AT&T has told us that this is a small difference. Consequently, AT&T's 4.3 million iPhone activations likely corresponds to approximately 75% of its total smartphone sales of 5.5 million units for the quarter.

    [​IMG]


    Even more impressively, the continued trend toward smartphone adoption means that the iPhone is representing a growing proportion of total phone sales (smartphone and non-smartphone) at AT&T. The carrier notes that smartphones represented more than 78% of its total phone sales to postpaid customers, meaning that the iPhone accounted for roughly 60% of AT&T's total phone sales to those customers during the quarter.

    The significant drop in iPhone activations for AT&T combined with the significant drop at Verizon are weighing on Apple's stock this morning, with the already-weakened share price down another $10 as trading opens for the day. But while investors appear nervous about Apple's iPhone sales numbers for the quarter, the primary driver will be international sales as Apple increased distribution during the quarter. China is by far the largest component to that equation, with the iPhone 4S not only having launched on China Unicom early in the quarter but also having been added by China Telecom in early March.

    Apple will report its quarterly financial results after the close of trading today, at approximately 4:30 PM Eastern Time.

    Article Link: iPhone Activations Drop 43% at AT&T, But Represent 60% of Total Postpaid Phone Sales
     
  2. q64ceo macrumors regular

    Joined:
    Aug 13, 2010
    #2
    I thought Sprint would be doing better than this.

    They are the last ones left with unlimited data plans
     
  3. Meandmunch macrumors 6502

    Joined:
    Jan 3, 2002
    #3
    Time to hurry up and get that next iPhone out the door.
     
  4. bad03xtreme macrumors 6502a

    bad03xtreme

    Joined:
    Jul 16, 2009
    Location:
    Northern, VA
    #4
    Aww, poor cell phone companies my heart aches for you. :rolleyes:
     
  5. Moonjumper, Apr 24, 2012
    Last edited: Apr 24, 2012

    Moonjumper macrumors 68000

    Joined:
    Jun 20, 2009
    Location:
    Lincoln, UK
    #5
    I wouldn't call the Apple share price "already-weakened". It had a recent bubble that is correcting itself.

    EDIT: I was referring to a mini bubble and correction within an upward trend. "already-weakened" sounds as if Apple stock is performing poorly when that very far from the truth. Sorry for not being clearer.
     
  6. basesloaded190 macrumors 68030

    basesloaded190

    Joined:
    Oct 16, 2007
    Location:
    Wisconsin
    #6
    With the slowest network and last ones to get LTE
     
  7. Ted13 macrumors 6502

    Joined:
    Dec 29, 2003
    Location:
    NYC
    #7
    Because??? The next iPhone will be out a year from the 4S -- Sept/October

    If for no other reason, Apple needs low power LTE chips from Qualcomm which won't ship in quantity before then.
     
  8. needfx macrumors 68030

    needfx

    Joined:
    Aug 10, 2010
    Location:
    macrumors apparently
    #8
    maybe the drop in sales is in anticipation of the next gen iPhone
     
  9. wovel macrumors 68000

    Joined:
    Mar 15, 2010
    Location:
    America(s)!
    #9
    Bubble? Correction? It was still one of the most undervalued stocks on the market.
     
  10. Popeye206 macrumors 68040

    Popeye206

    Joined:
    Sep 6, 2007
    Location:
    NE PA USA
    #10
    Funny.... it's still a gain from normal quarters, but investors only see the dip from the holidays. :rolleyes:
     
  11. b24pgg macrumors 65816

    Joined:
    Jan 28, 2009
    Location:
    CA
    #11
    Well keep in mind that new activations don't mean new customers/phone lines. A lot of the activations on AT&T/Verizon could be on existing unlimited data plans.
     
  12. lord patton macrumors 65816

    lord patton

    Joined:
    Jun 6, 2005
    Location:
    Chicago
    #12
    AT&T iPhone "activations" down 43%, but Verizon's were down only 25%. I wonder why?
     
  13. macingman macrumors 68020

    macingman

    Joined:
    Jan 2, 2011
    #13
    Because this "unlimited data" plan operates at speeds most carriers consider to be throttled speeds.

    It's not just about the quantity of calls/SMS/data but also the quality and speed of the connection. Infact I'll say quality is more important here in Australia, the telstra network, which is by far the best charges about $20 more a month for what you get on other carriers but because their speed an reliability is much better they still have the biggest marketshare.
     
  14. carmenodie macrumors 6502a

    Joined:
    Apr 25, 2008
    #14
    I would say it was iPhone saturation. Do many people have the phone. And in business you have to keep selling the same sh** over and over again. Apple and all them players in this game know the drill.
     
  15. robvas macrumors 68000

    Joined:
    Mar 29, 2009
    Location:
    USA
    #15
    3GS upgraders.
     
  16. ArtOfWarfare macrumors 604

    ArtOfWarfare

    Joined:
    Nov 26, 2007
    #16
    Geez those sales suck. Probably has something to do with how few new features were unveiled with the 4S.
     
  17. iSRS macrumors 6502

    iSRS

    Joined:
    Mar 2, 2010
    #17
    how is this surprising? Have you been in an AT&T or Verizon store lately? They have maybe a half-dozen basic phones. My wife is in need of an upgrade but not willing to pay $30/month for a data plan that she will barely use. The cheapest basic phone at our local Verizon store was $80. For a piece of junk. For $20 more she could get an iPhone 4. All the "free" phones are droids. So she decided to wait for the 'promised' shared data to see what that costs.

    My point is, consumers don't think long term. They think up front costs. "Free" phone gets them. So $80 for a basic phone or "free" for a droid. Droid wins.
     
  18. MadDog31 macrumors 6502a

    Joined:
    May 20, 2007
    #18
    Looks higher than it's been in the last year with exception to the obvious holiday quarter, and of course there's going to be a drop after having a massive quarter like that. Look for the same pattern this year.

    Rinse, repeat, continue enjoying the iPhone.
     
  19. Frobozz macrumors 65816

    Frobozz

    Joined:
    Jul 24, 2002
    Location:
    South Orange, NJ
    #19
    I stocked up on shares yesterday. That hasn't rarely been a bad decision in recent times, and given these numbers it's looking good. The ridiculous thing about following Apple stock is that you know they will beat their own guidance. So the market never looks at that, they add a percentage uptick on that every time. I just don't seem momentum slowing down compared to last year's quarter. Maybe some softness in Mac sales due to people waiting on the refresh– I can anecdotally support that one.
     
  20. cvaldes macrumors 68040

    Joined:
    Dec 14, 2006
    Location:
    somewhere else
    #20
    Only the foolish would tell a tech company to rush a product out the door.

    Plus, we're talking about Apple. They work on their own timetable.

    Take your time, Apple. Get it right.
     
  21. shanmugam, Apr 24, 2012
    Last edited: Apr 24, 2012

    shanmugam macrumors 68020

    shanmugam

    Joined:
    Sep 24, 2008
    Location:
    Blazer town!
    #21
    hmmm, forgot about the holiday quarter so that make sense.

    last quarter was block buster but this quarter normal ...
     
  22. JPark macrumors 6502a

    Joined:
    Jun 5, 2006
    #22
    Compare Q1 2012 with Q1 2011. 20% growth on AT&T. Q4 was a holiday quarter and the quarter with iPhone 4S. Of course the numbers were higher.
     
  23. Hastings101 macrumors 68000

    Hastings101

    Joined:
    Jun 22, 2010
    Location:
    K
    #23
    I guess I don't see the big deal, why wouldn't sales be down compared to a holiday quarter?
     
  24. tshrimp macrumors 6502

    tshrimp

    Joined:
    Mar 30, 2012
    #24
  25. Yr Blues macrumors 68000

    Joined:
    Jan 14, 2008
    Location:
    Houston, Texas
    #25
    a few years ago smart phones were novel, now everyone's on their second or third one. people are getting bored and the global economy is not what it used to be. unless there's a revolutionary new iphone … and not just a minor upgrade … people will be less likely to care.
     

Share This Page