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AT&T Activates 2.7 Million iPhones in Q1 2010 as Growth Slows

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AT&T today announced financial results for the first quarter of 2010, revealing that the carrier activated 2.7 million iPhones during the quarter. The number is down from 3.1 million in the previous quarter, despite Apple announcing yesterday that it had sold 8.75 million iPhones overall during the quarter, an increase of approximately 15,000 units over the prior quarter.

The results illustrate that international growth is a primary driver for the iPhone as AT&T begins to experience a slowing of its portion of the overall growth. The iPhone's ability to attract new customers to AT&T has also begun to slip, as the company noted that "more than one-third" of its iPhone activations for the quarter came from customers new to the carrier, down from a 40% figure the company has consistently cited in past earnings releases.

Signs of slowing iPhone growth for AT&T are likely to add to the clamor for Apple to extend distribution to additional carriers in the United States, with market leader Verizon having received the most attention in recent years despite the requirement that Apple offer specialized hardware to operate on the carrier's current network. For its part, Apple executives noted during yesterday's earnings conference call that the U.S., Germany, and Spain remain the company's three major markets where the iPhone is offered in exclusive carrier relationships. Despite that fact that the company has seen increased unit sales and market share in countries where it had moved to a multi-carrier model, however, it is not convinced that that dynamic would play out everywhere. Consequently, Apple continues to evaluate its carrier relationships on a country-by-country basis.

Article Link: AT&T Activates 2.7 Million iPhones in Q1 2010 as Growth Slows
 

thevofl

macrumors regular
Aug 7, 2006
193
164
I hope that T-Mobile gets it, being the only other GSM carrier in the US. I'm getting tired of working on my friend's jailbroken phone.
 
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bdkennedy1

Suspended
Oct 24, 2002
1,275
528
The word is out that their over-priced service sucks.

When I tell people how much I pay per month and the crap people have to go through with the service the always choose another company.
 
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trjwv

macrumors regular
Feb 24, 2010
201
0
kentucky...Go Cats
I know of 2 which will be bought as soon as verizon has the iphone, Wife and myself...We especially love the new ichat feature coming this june. We can see each other utilizing our phones. Great for our kids.......
 
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zacman

macrumors 6502a
Jul 11, 2008
625
0
the numbers are misleading. Q4 contains x-mas sales.

The Q4 numbers already were lower than the Q3 numbers. Apple was the only major smartphone maker that lost market share in the important holiday quarter. And Q1/10 are still lower than Q3/09.
 
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groupeone

macrumors newbie
Sep 29, 2001
9
0
I disagree

This article glosses over many things and may have missed some important points. While international sales have definitely boosted iPhone sales and have become an important part of the revenues, that is only part of the story. If you look at the pattern of year-over-year sales of the iPhone, growth is still meteoric. Second, compared to the previous (Christmas holiday) quarter, sales will always be less. To assert that this means that demand is falling fails to take the seasonal nature of sales into account. This is a huge failing of the flawed analysis of this article.

In addition, international sales growth should be expected to outpace US sales. China alone accounted for over 2 million iPhone sales in the past quarter. As distribution channels expand abroad, this will likely increase. Even the analysts from the large Wall Street firms missed this point.

Third, consumers are starting to get wind of a next generation iPhone in a few months, and may hold off on buying an iPhone now. This has nothing to do with the recent Gizmodo dust-up, but rather, more savvy consumers understanding the product release cycle of the iPhone.

With any product, it is likely that sales will start to flatten out over time. But to infer that the iPhone is past its peak, that its world is coming apart is flawed reasoning at best. Look again at Apple's sales for the quarter announced yesterday, and if you see failure in them, you are alone.
 
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cawesjmu

macrumors 6502
Apr 4, 2004
382
0
Richmond, VA
So from the commercials, I gather Verizon couldn't do data and voice at the same time, which is a big selling point for the iPhone on ATT. IF Apple ever made a Verizon iPhone, would it be limited to voice or data at one time, cus that would suck. I would choose the ATT iPhone just for that.
 
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OriginalMacRat

macrumors 6502a
Mar 9, 2007
583
855
I hope that T-Mobile gets it, being the only other GSM carrier in the US. I'm getting tired of working on my friend's jailbroken phone.

Have another friend pick up unlocked iPhones from the Apple Store in Hong Kong.

No need to deal with the jailbroken junk.
 
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OriginalMacRat

macrumors 6502a
Mar 9, 2007
583
855
So from the commercials, I gather Verizon couldn't do data and voice at the same time, which is a big selling point for the iPhone on ATT. IF Apple ever made a Verizon iPhone, would it be limited to voice or data at one time, cus that would suck. I would choose the ATT iPhone just for that.

Not to mention that Verizon requires vendors to make phones for them that has common features disabled. Like syncxml for syncing your address book on your Mac.

Verizon is a major FAIL in customer value.
 
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*LTD*

macrumors G4
Feb 5, 2009
10,703
1
Canada
Glass half-empty or half-full . . .

http://www.businessweek.com/news/20...projections-as-iphone-attracts-customers.html

AT&T profit beats estimates as Apple iPhone attracts customers
Wednesday, April 21, 2010

"AT&T Inc., the largest U.S. phone company, posted first-quarter profit that exceeded analysts’ projections after attracting wireless customers with devices like the iPhone," Amy Thomson reports for Bloomberg.

"AT&T said today that earnings were 59 cents a share, excluding costs tied to new U.S. health-care legislation. That beat the 55-cent average of estimates in a Bloomberg survey," Thomson reports. "The company, which offers Apple Inc.’s iPhone in the U.S., activated a net new 2.7 million devices last quarter."

Thomson reports, "AT&T’s exclusive hold on the device has helped the carrier keep customers, with turnover rates dropping to 1.3 percent... The iPhone is 'extremely important for them, which is a good and a bad thing,' said Chris King, a Baltimore-based analyst at Stifel Nicolaus & Co. 'It’s a good thing today because without it, they’d be sunk.' He advises investors to buy the shares.'"
 
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MarlboroLite

macrumors 6502a
Oct 29, 2007
579
5
the 13 colonies
Duh. Anybody with more than 2 brain cells could have tol you that AT&T can only attract so many switchers at this point. That cow has been nearly milked dry.

And it's laughable for apple to claim that more carriers in the US wouldn't necesessarily work. It's worked everywhere else and with every other phone manufacturer. 3 years plus for an exclusive has to be the longest in history and it can only help apple and consumers to expand choice.
 
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calvy

macrumors 65816
Sep 17, 2007
1,270
9
Gee, so sales of the iPhone are down in a Quarter in which everyone knows a new iPhone is right around the corner. Duh.

No, verizon lovers, you aren't getting an iPhone on you network which won't support it's advanced features. Tmobile might have a slight chance, but don't count on it.
 
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zacman

macrumors 6502a
Jul 11, 2008
625
0
Second, compared to the previous (Christmas holiday) quarter, sales will always be less. To assert that this means that demand is falling fails to take the seasonal nature of sales into account.

But Apple already sold less phones in the holiday quarter than in the quarter before.

So what it means is basically: In Q3 when the new iPhone is released most people get it. Q4 sales are already lower than Q3 numbers, holiday doesn't help the iPhone here. Q1+Q2 are lower because now everyone waits for the new iPhone in Q3.

And btw. Have a look at the Q1/2009 numbers (because Apple always quotes the 130% increase): It was one of the worst quarter ever for the iPhone because everyone waited for the new iPhone.
 
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jav6454

macrumors P6
Nov 14, 2007
17,001
1,869
1 Geostationary Tower Plaza
I am actually inclined to think T-Mobile will soon get the iPhone. Think about it, it's the carrier that doesn't make rattle against it, the only other GSM carrier and the only carrier in GSM with cheap plans.

Verizon, lol no, they keep bashing the iPhone, plus have an incompatible network and they keep making noise how they want the iPhone. Noise which Apple really hates.
 
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mickeyd26

macrumors newbie
Jun 29, 2007
19
0
Which, if the leaked iPhone 4G is any indication, will not be coming this year. Guys, Apple is not making a CDMA phone exclusively for a couple million users in the United States.

I guess Verizon's 91.2+ million users aren't that big a deal. CDMA, although not the global standard, has a huge 2G and 3G footprint in the US. Sprint has nearly 50 million users too. There are definitely more than "a couple of million users".

But on a GLOBAL scale, GSM is the way to mass produce phones. So I understand why Apple went with that standard first.
 
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Bigdaddyguido

macrumors regular
Apr 3, 2008
113
0
I'm sure this has nothing to do with the fact apple is obviously ramping up to update the iPhone, and is even publically documented to have called the next update an A+.

How are people still believing the iPhone is coming to verizon? There's 0 chance until 2012 most likely. I love how every thread has people saying they know people waiting to buy a verizon iphone. Face it, it's bit happening. Switch to AT&T or get the incredible.
 
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