iPhone Represents 73% of Smartphone Sales, 55% of All Postpaid Phone Sales at AT&T in 2Q 2012

[MacRumors]

AT&T today announced financial results for the second quarter of 2012, revealing that the carrier activated 3.7 million iPhones during the quarter, down from 4.3 million in the previous quarter as customers begin to slow their purchases ahead of the next-generation iPhone launch.

Notably, AT&T's 3.7 million iPhone activations accounts for roughly 73% of the carriers 5.1 million total smartphone sales during the quarter, down slightly from last quarter's share. With smartphones now accounting for 77% of AT&T's total postpaid device sales, the iPhone represents approximately 55% of the carrier's total phone sales to contract customers, down slightly from last quarter's 60% share.

AT&T sold 5.1 million smartphones in the second quarter. Smartphones represented 77 percent of postpaid device sales. At the end of the quarter, 61.9 percent, or 43.1 million, of AT&T's postpaid subscribers had smartphones, up from 49.9 percent, or 34.1 million, a year earlier. AT&T's ARPU for smartphones is twice that of non-smartphone subscribers, and about 88 percent of smartphone subscribers are on FamilyTalk® or business plans. Churn levels for these subscribers are significantly lower than for other postpaid subscribers. More than one-third of AT&T's postpaid smartphone customers use a 4G-capable device.

Android, iPhone and Windows device sales were supported by AT&T's 4G network. Only AT&T's 4G network lets iPhone 4S download three-times faster than any other U.S. carrier's network. In the quarter, the company activated 3.7 million iPhones, with 22 percent new to AT&T.

Although Verizon reported a 16% quarter-over-quarter drop in iPhone sales and AT&T's numbers reveal a similar 14% decline, the performances are generally being viewed as a positive for Apple, which will report its earnings after the close of trading today. Analysts were already expecting Apple's overall iPhone sales to decline this quarter ahead of the next iPhone launch, and with the company's domestic sales holding up relatively well and international sales likely still booming, the company is likely to post solid results for its primary revenue generator.

Article Link: iPhone Represents 73% of Smartphone Sales, 55% of All Postpaid Phone Sales at AT&T in 2Q 2012

 

[Razeus]

AT&T better get their act together then.

 

[ayala421]

And now they want to penalize their customers by charging extra for FaceTime data...screw them.

 

[miles01110]

Err... nowhere in the earnings statement does it say that the iPhone represents 77% of AT&T's smartphone sales. Also, 3.7 million iPhones is approximately 72.5% of 5.1 million smartphones, not 77%, but iPhone sales figures aren't in the earnings statement either.

edit: Sorry, italics above are incorrect. Reading fail.

 

[Yelmurc]

Today's real story in Apples earnings will be China's revenue share. Last quarter it overtook Europe to become the second revenue market for Apple. While I don't think it will catch the US this quarter I wouldn't be surprised if it gets a lot closer.

 

[boronathan]

Err... nowhere in the earnings statement does it say that the iPhone represents 77% of AT&T's smartphone sales. Also, 3.7 million iPhones is approximately 72.5% of 5.1 million smartphones, not 77%, but iPhone sales figures aren't in the earnings statement either.

edit: Sorry, italics above are incorrect. Reading fail.

Yeah the math is wrong its 72.5 but still impressive nonetheless

 

[MacinDoc]

Interesting that the iPhone still accounts for a disproportionately large percentage of AT&T's smartphone sales, especially considering that AT&T's billing policies seemingly discriminate against iPhone customers. Clearly this is a legacy of AT&T's initial exclusivity with the iPhone, as those who wanted iPhones switched to the carrier.

 

[KdParker]

seriously....just release the new iphone on Aug. Really expect a nice redesign.

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Interesting that the iPhone still accounts for a disproportionately large percentage of AT&T's smartphone sales, especially considering that AT&T's billing policies seemingly discriminate against iPhone customers. Clearly this is a legacy of AT&T's initial exclusivity with the iPhone, as those who wanted iPhones switched to the carrier.

True. But with the new iphone 4g....and data caps with ATT. I will move to Verizon. Nothing keeping me at ATT anymore.

 

[iCaleb]

AT&T sucks.

They took advantage of my grandpa just because he's old..........they added BS fees on his bills.

Also they have BS customer support.

Verizon is much better.

 

[MacinDoc]

I'm jonesin for today's financials from Apple. We should have plenty of ammunition to fire at fandroids and windolts later. We're winning! We're really winning!

Actually, if the rumors about all the new products to be released in the next few months are true, then Apple's quarterly statement will likely beat their estimate, as usual, but will probably fall short of market expectations. And expect their guidance for next quarter to be lower.

 

[Rodimus Prime]

Interesting that the iPhone still accounts for a disproportionately large percentage of AT&T's smartphone sales, especially considering that AT&T's billing policies seemingly discriminate against iPhone customers. Clearly this is a legacy of AT&T's initial exclusivity with the iPhone, as those who wanted iPhones switched to the carrier.

how does it discriminate against iPhone customers?

Also I would like to point out only more recently has AT&T started carrying good Android phones and it still lags quite a bit behind the others. Hell part of the reason I was really glad to see the iPhone go to the other carriers is it caused AT&T to finally start getting the good Android phones.

 

[mattopotamus]

Err... nowhere in the earnings statement does it say that the iPhone represents 77% of AT&T's smartphone sales. Also, 3.7 million iPhones is approximately 72.5% of 5.1 million smartphones, not 77%, but iPhone sales figures aren't in the earnings statement either.

edit: Sorry, italics above are incorrect. Reading fail.

They fixed it

 

[Puevlo]

Just goes to show that Apple would be nothing without AT&T.

 

[tny]

Just goes to show that Apple would be nothing without AT&T.

Please tell me this is sarcasm - because the fact that the iPhone is 73% of AT&T's smartphone sales tells us nothing about what percentage of the iPhone's success is due to AT&T.

 

[IPlayFair]

AT&T Got a Head Start on the Other Telecoms

AT&T was given the original exclusive contract by Apple. AT&T had three years to cultivate a customer base before any of the other telecoms got the opportunity to sale Iphones. That is the reason 73% of AT&T sales are Iphones. Its not because AT&T is doing anything special.

 

[Codyak]

I'll be curious to see how it pans out when the iPhone has LTE. Verizon's LTE is just about everywhere I go now (even as much as 40 miles from DC.). There are even some places where I get about 15/12 D/U and the only option for home internet is dial up. Also I've used about 12 Gigs this month and zero throttling.

 

[NoExpectations]

Just goes to show that Apple would be nothing without AT&T.

People forget that Apple would be nothing more than an MP3 Player company without the Wireless Network, which by the way AT&T helped invent:

http://www.corp.att.com/attlabs/reputation/timeline/83celltech.html

 

[GeeEllBee]

Can't wait to leave AT&T

With the new iPhone (with 4G LTE, rumored) soon to be released, AT&T is still not offering 4G LTE in my corner of the world. Of late, I have noticed that performance on their 3G network in my neck of the woods has been abysmal and terribly inconsistent. Then there is the news circulating about AT&T violating our privacy and civil rights by releasing information about us without as much as a hiccup from the requestor and without our knowledge or consent. Finally, AT&T (as is Verizon) is an open member of ALEC, the notorious right wing Republican anti government lobbying machine. I am currently seeking carrier alternatives. In fact, I welcome suggestions from forum participants.

 

[boronathan]

I'll be curious to see how it pans out when the iPhone has LTE. Verizon's LTE is just about everywhere I go now (even as much as 40 miles from DC.). There are even some places where I get about 15/12 D/U and the only option for home internet is dial up. Also I've used about 12 Gigs this month and zero throttling.

Well at Verizon the 3g 4s outsold all the LTE phones combined this quarter , so I imagine an lte iPhone will do even better then that. LTE is going to make the iPhone one of the best phones out there and easily the best selling (not that it isn't already)

 

[the8thark]

AT&T was given the original exclusive contract by Apple. AT&T had three years to cultivate a customer base before any of the other telecoms got the opportunity to sale Iphones. That is the reason 73% of AT&T sales are Iphones. Its not because AT&T is doing anything special.

If I am correct (not 100% sure I am) other telcos were approached by Apple in the beginning and all told Apple to pound sand. And only AT&T would take the iPhone. Hence their 3 year exclusivity deal.

 

[Codyak]

Well at Verizon the 3g 4s outsold all the LTE phones combined this quarter , so I imagine an lte iPhone will do even better then that. LTE is going to make the iPhone one of the best phones out there and easily the best selling (not that it isn't already)

I've noticed whenever I do get switched over to 3G it's definitely not faster than I remember AT&T's, but I don't think even once since going to Verizon have I wondered whether or not I have a signal. This is even when traveling to West Virginia.

 

[Macboy Pro]

He we go with the weekly, thoughtless, unintelligent AT&T Haters thread.

 

[JB413]

I can't wait until the new phone comes out and I can switch my family to Verizon.

 

[Macboy Pro]

If I am correct (not 100% sure I am) other telcos were approached by Apple in the beginning and all told Apple to pound sand. And only AT&T would take the iPhone. Hence their 3 year exclusivity deal.

EXACTLY. And they did one heck of a job keeping up with the unexpected boom in smartphones/iPhones.

They made a unforseen mistake offering unlimited data as they didn't know how fast the iPhone would take off.
They have done everything they can to recover and keep it as the FASTEST iPhone Telecom in the United States, by a long shot.
They still honor the unlimited plans that were grandfathered, but tend to throttle them to the speeds they would have received when they signed up back in 2008. Yes, that is right, you still get unlimited but not at 10 times the speed, so people quit complaining.
They are a business so they have to charge somewhere. Its s free market, go to Verizon if they have a better product and price point.

None of this is addressed to the person whom I quoted. Simply my 2 cents on the whole issue.

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AT&T was given the original exclusive contract by Apple. AT&T had three years to cultivate a customer base before any of the other telecoms got the opportunity to sale Iphones. That is the reason 73% of AT&T sales are Iphones. Its not because AT&T is doing anything special.

And that customer base has ALL had a chance to switch. All contracts have expired at this point so I guess your point is moot. AT&T must be doing something pretty well because the predicted mass exit from AT&T for Verizon or Sprint didn't even come close to happening.

Maybe its..
-the WAY faster network
-the duplex network
-the cheaper plans for most
-the better options for nights/weekends, texting, Friends/Family, free call lists
-the WAY better customer service

 

[Rogifan]

AT&T sucks.

They took advantage of my grandpa just because he's old..........they added BS fees on his bills.

Also they have BS customer support.

Verizon is much better.

Not sticking up for AT&T but just curious what these fees were that got added to his bill? I wasn't aware AT&T could add fees to people's bills because they're old...