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AT&T Joins Apple's Record-Setting Quarter With 5.2 Million iPhone Activations

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AT&T today announced its financial results for the third quarter of 2010, revealing that it activated a record 5.2 million iPhones during the quarter. The number was significantly higher than the previous record of 3.2 million activations set last quarter.
AT&T's third-quarter integrated device growth included 5.2 million iPhone activations, the most iPhone activations ever in a quarter. This is 62 percent more than the previous quarterly record of 3.2 million activated in the second quarter of 2010. Approximately 24 percent of those activations were for customers who were new to AT&T.
The share of iPhone activations going to new AT&T customers continued to decline, as it has over the past several quarters, presumably due to a shrinking base of potential customers who have not yet switched and a significant existing base of existing iPhone users who were ready to upgrade their handsets to the iPhone 4.

AT&T has noted in the past that "activations" reported during a quarter include previously-sold devices being reactivated by new customers, such as when an older-model iPhone is passed down to a relative or sold. Consequently, comparisons between AT&T's iPhone activation data and Apple's device sales numbers, which included a record-shattering 14.1 million iPhones for the quarter, are not valid.

Even beyond the iPhone, AT&T customers are continuing to shift to "integrated devices", handsets offering a virtual or physical QWERTY keyboard. AT&T reports that 57.3% of its postpaid user base is now on such devices, up from 42% just a year earlier.

Article Link: AT&T Joins Apple's Record-Setting Quarter With 5.2 Million iPhone Activations
 

dolphin842

macrumors 65816
Jul 14, 2004
1,168
28
I wonder how these numbers will change once the iPhone is available on different carriers...
 
Comment

NoExpectations

macrumors 6502a
Sep 23, 2008
671
2
I feel like the numbers are going to be staggering....mind blowing even

Not sure I agree. Apple is already producing as many as they can....and all of the world's 168 Carriers that support the iPhone are desperate for more. So if more US carriers get the iPhone, Apple is still limited by production limits.
 
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NebulaClash

macrumors 68000
Feb 4, 2010
1,810
0
I think the iPhone numbers will continue to increase for the foreseeable future. There are many people who have not yet made the switch to smart phones, but whenever they do they have a choice between the iPhone ads that show a cute world of fun and useful apps for everyone, or Android with its imagery of young men being converted into machines that appeal to, well, young men.

Once the iPhone is available on Verizon too, it becomes the smart phone for the rest of us.
 
Comment

devinci99

macrumors regular
Mar 2, 2008
236
5
I don't get it.

IF AT&T really have been setting record breaking numbers in terms of sales, and profit almost every quarter since they partnered with Apple; shouldn't they be bigger than Verizon by now?

they were the #2 largest carrier before the iphone, and they weren't drastically smaller than Verizon. At the pace they supposed to be reporting, they should easily taken #1 by now.

So I don't get how they can have these numbers and still be #2. It doesn't add up.

I think it's all fluff talk to make their stock holders happy.

VS. Apple.

don't think Apple is all talk. they are growing and gaining market share by the quarter. If indeed Apple U.S retail share is 20% that is HUGE for any single computer company. Don't think MacOS X versus MS, but think Apple versus Dell, HP, etc.

20% share selling hardware is a long way since 1999.
 
Comment

fcortese

macrumors demi-god
Apr 3, 2010
2,136
3,407
Big Sky country
ATT and Apple are rolling in it together. Really makes you wonder if that January Verizon/Sprint Iphone is actually coming.

It will, and the iPhone numbers will continue to climb. The question is what will happen to AT&T? Apple is a business and it makes good business sense to make a CDMA phone-Verizon, China, India-increase market access=increase $.
 
Comment

spazzcat

macrumors 68030
Jun 29, 2007
2,826
1,686
I don't get it.

IF AT&T really have been setting record breaking numbers in terms of sales, and profit almost every quarter since they partnered with Apple; shouldn't they be bigger than Verizon by now?

they were the #2 largest carrier before the iphone, and they weren't drastically smaller than Verizon. At the pace they supposed to be reporting, they should easily taken #1 by now.

So I don't get how they can have these numbers and still be #2. It doesn't add up.

I think it's all fluff talk to make their stock holders happy.

VS. Apple.

don't think Apple is all talk. they are growing and gaining market share by the quarter. If indeed Apple U.S retail share is 20% that is HUGE for any single computer company. Don't think MacOS X versus MS, but think Apple versus Dell, HP, etc.

20% share selling hardware is a long way since 1999.

I think VZW buying Alltel may have something to do with it?
 
Comment

shartypants

macrumors 6502a
Jul 27, 2010
922
60
Number of Activations doesn't seem to have much meaning, if anything it can mean more cost to AT&T for people upgrading to new devices (and getting the subsidy). They should just list the number of new subscribers.
 
Comment

NoExpectations

macrumors 6502a
Sep 23, 2008
671
2
I don't get it.

IF AT&T really have been setting record breaking numbers in terms of sales, and profit almost every quarter since they partnered with Apple; shouldn't they be bigger than Verizon by now?

they were the #2 largest carrier before the iphone, and they weren't drastically smaller than Verizon. At the pace they supposed to be reporting, they should easily taken #1 by now.

So I don't get how they can have these numbers and still be #2. It doesn't add up.


AT&T was larger than Verizon until Verizon purchased Alltel in 2009 and gained nearly 15 million new customers. Since then, AT&T has been catching up. I think they are only about 1-2 million short of Verizon right now.....depending on Verizon's 3Q Earnings tomorrow.
 
Comment

NoExpectations

macrumors 6502a
Sep 23, 2008
671
2
It will, and the iPhone numbers will continue to climb. The question is what will happen to AT&T? Apple is a business and it makes good business sense to make a CDMA phone-Verizon, China, India-increase market access=increase $.

Financially, it might make sense for Apple to keep AT&T as an exclusive US carrier a bit longer. If Apple is still short on supply (they are), then they are already selling every iPhone that they can make. There are around 168 Carriers in the world fighting for every single available iPhone. Each region gets a certain quantity. In the US, that number is fixed. If that number is shared among multiple carriers, then Apple would not be able to get their current high kickback from a single carrier.

So, if I'm Apple and (as an example) I can only produce/sell 5 million iPhones for the US market, I want to maximize my profits. To do that, I want the highest available kickback from the carriers. A single carrier model will accomplish that.

Now, once supply meets/exceeds demand, then this model fails and Apple would be best served by multiple carriers.
 
Comment

Rocketman

macrumors 603
As the iPhone evolves and establishes it has value well above the network cost, price aversion drops and people get into the simple mode: "I want."

This is working for both Apple and AT&T.

Steve specifically stated they had headroom to reduce pricing further if warranted, but apparently that is a distant memory as iPhone and iPad consumes the entire production capacity of every available fab.

Rocketman
 
Comment

tjanuranus

macrumors member
May 25, 2004
86
5
haters are out today! I don't understand why you would go on a website for a company that you hate just to push the negative button. It's unreal.
 
Comment

michaelsviews

macrumors 65816
Sep 25, 2007
1,311
304
New England
Interesting

Remember when the 1st iPhone came too? and how Verizon customers jumped over to AT&T?

I cannot wait to see what happens when the CDMA version of the iPhone is released. Reports say that VZW is picking it up in January, I personally have NOT seen anything on Sprint.

Should prove to be interesting and seeing how Verizon's network will handle the device.

AT&T's service is still unacceptable in this area, I thought it was because I have the 3G iPhone, but I have heard of others having the same experience's I have been having. If overly cloudy or heavy rain comes in, the signal decreases which is understandable, but even during clear weather.?
 
Comment

goodhood

macrumors newbie
Aug 20, 2007
9
0
I hope it comes to Verizon soon

I had an iPhone 3G and was out of contract since August. I had been considering the iPhone 4, but as time went on, I actually noticed a significant increase in dropped calls on AT&t. I finally broke down and jumped back to Verizon, picking up a Droid X. While not my first choice, my cell phone is my only phone and I need to be able to make a phone call. People like myself are the reason that the iPhone needs to come to Verizon. Admittedly, I did hedge my bet and only signed a one-year contract. If Verizon does get the iPhone, I hope they keep up this practice of offering only a 1-year contract for $70 more.
 
Comment

SAD*FACED*CLOWN

macrumors 65816
Apr 5, 2010
1,342
1
Houston, TX
I don't get it.

IF AT&T really have been setting record breaking numbers in terms of sales, and profit almost every quarter since they partnered with Apple; shouldn't they be bigger than Verizon by now?

they were the #2 largest carrier before the iphone, and they weren't drastically smaller than Verizon. At the pace they supposed to be reporting, they should easily taken #1 by now.

So I don't get how they can have these numbers and still be #2. It doesn't add up.

I think it's all fluff talk to make their stock holders happy.

VS. Apple.

don't think Apple is all talk. they are growing and gaining market share by the quarter. If indeed Apple U.S retail share is 20% that is HUGE for any single computer company. Don't think MacOS X versus MS, but think Apple versus Dell, HP, etc.

20% share selling hardware is a long way since 1999.

it's not fluff son...AT&T is Apple's only partner in the US...if Apple is selling a ton of phones in the US who do you suppose is activating them? The only carrier with the ability to do so....don't be so blinded by your personal bias...and just because AT&T is growing does not mean that Verizon stopped growing...they have a lot of new Droid owners on big red...think critically and not through fanboy colored lenses
 
Comment

a.gomez

macrumors 6502a
Oct 10, 2008
924
726
I don't get it.

IF AT&T really have been setting record breaking numbers in terms of sales, and profit almost every quarter since they partnered with Apple; shouldn't they be bigger than Verizon by now?

they were the #2 largest carrier before the iphone, and they weren't drastically smaller than Verizon. At the pace they supposed to be reporting, they should easily taken #1 by now.

So I don't get how they can have these numbers and still be #2. It doesn't add up.

I think it's all fluff talk to make their stock holders happy.

VS. Apple.

don't think Apple is all talk. they are growing and gaining market share by the quarter. If indeed Apple U.S retail share is 20% that is HUGE for any single computer company. Don't think MacOS X versus MS, but think Apple versus Dell, HP, etc.

20% share selling hardware is a long way since 1999.


Verizon has been having good sales so they not standing still - also those activations are not all new members - some are just people signing on to another 2 years or upgrading to new smart phone - so their base does not get bigger with those

total new wireless subscribers were 2.6mill - that includes postpaid and prepaid - 76% of iphone activations were from existing clients
 
Comment
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