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iPhone Still Represents Majority of Smartphone Sales at AT&T

Thursday October 20, 2011 7:43 am PDT by Eric Slivka
Alongside AT&T's announcement of one million iPhone 4S activations today, the carrier also released its financial results for the third quarter of 2011. As Apple saw with customers holding off on iPhone purchases in anticipation of a new model, AT&T reported that it activated 2.7 million iPhones during the quarter, down from 3.6 million in each of the previous two quarters.

All told, AT&T sold 4.8 million smartphones during the quarter, and while AT&T's "activations" number is slightly different than its sales numbers due to the inclusion of previously-sold handsets being reactivated by new users, that difference is slight. As a result, the iPhone continues to represent more than half of AT&T's overall smartphone sales.

In the third quarter, the company sold 4.8 million smartphones, representing nearly two-thirds of postpaid device sales. Sales of Android devices more than doubled year over year, and almost half of all smartphone sales were non-iPhone devices. During the quarter, 2.7 million iPhones were activated.

AT&T notes that it has now passed 100 million subscribers and that its profit margins in wireless improved year-over-year, due in part to the lack of an iPhone launch just before or during the third quarter this year. AT&T's churn rate of customers leaving the carrier also decreased year-over-year, even for iPhone customers who had Verizon as a new iPhone option during this year's third quarter.

Overall, AT&T's revenues were down 0.3% compared to the year-ago quarter, with the carrier citing iPhone launch timing as one of the primary factors in that decrease.
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DiamondMac
Posted: 18 weeks ago



That's because AT&T is awesome!


AT&T ever plan on showing that awesomeness?
Rating: 4 Positives / 0 Negatives
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Caliber26
Posted: 18 weeks ago
This really shouldn't come as a surprise to anyone. I mean, seriously, what other device out there would possibly outsell the iPhone?
Rating: 3 Positives / 0 Negatives
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h0mi
Posted: 18 weeks ago


All told, AT&T sold 4.8 million smartphones during the quarter, and while AT&T's "activations" number is slightly different than its sales numbers due to the inclusion of previously-sold handsets being reactivated by new users, that difference is slight. As a result, the iPhone continues to represent more than half of AT&T's overall smartphone sales.AT&T notes that it has now passed 100 million subscribers and that its profit margins in wireless improved year-over-year, due in part to the lack of an iPhone launch just before or during the third quarter this year. AT&T's churn rate of customers leaving the carrier also decreased year-over-year, even for iPhone customers who had Verizon as a new iPhone option during this year's third quarter.


This is also a good indication that while android has a larger marketshare (~35% to ~29% IIRC ... numbers are probably off a little) it's due in large part to having been available for so long on Verizon and Sprint while the iphone wasn't on either carrier until earlier this year & a week ago respectively.
Rating: 2 Positives / 0 Negatives
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Caliber26
Posted: 18 weeks ago

I would have bought a 4s if I had an upgrade availible. I bought an iphone 4 last year but my upgrade date is feb 2012! I spend 250 bucks a month on out phones. Guess thats not enough. :confused:


That is interesting. I'm not sure what to say, then. I have a total of three lines and spend $180 every month (after my discount through my job). 700 min plan, unlimited texting + unlimited mobile-to-mobile, two lines with 2GB and one with 200MB. Granted, only my line was eligible for an upgrade this year even though two of my lines got iPhone-4 last year.

I'd call AT&T again and ask nicely about getting your date moved closer and point out what you're spending. They should at least do it for your main number.
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imotionb18
Posted: 18 weeks ago
I would have bought a 4s if I had an upgrade availible. I bought an iphone 4 last year but my upgrade date is feb 2012! I spend 250 bucks a month on out phones. Guess thats not enough. :confused:
Rating: 2 Positives / 0 Negatives
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Caliber26
Posted: 18 weeks ago

Why is the real reason not being said why most are not upgrading.
ATT did not roll back upgrade dates. Most everyone that bought an iPhone 4 last year cannot but until Nov or later.

Yes ATT did let some upgrade early for some magically reason they cannot explain to me but many cannot.

I do not know many people that want to pay an extra 250 dollars, plus a 18 dollar fee on top of the 199, 299, or 399 price of the phone.

Wait a couple months and see how many sell with Apple, and I am sure Verizon also.


Discounted upgrades are offered to customers based on how much they spend on their wireless services. If you have the cheapest minute/text/data plans and are keeping your expenses to a minimum, then AT&T feels that they have not made enough money off of you, just yet, and will not give you another discounted device until they've made what they need to make, in order to recover the amount they subsidized when you got your phone for $199 (or $299, if you got the 32GB).

Basically, the more you spend, the sooner you're eligible for an upgrade. And this is also based on a per-line basis.
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rauber9
Posted: 18 weeks ago
That's because AT&T is awesome!
Rating: 3 Positives / 1 Negatives
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MacVixen
Posted: 18 weeks ago

That is interesting. I'm not sure what to say, then. I have a total of three lines and spend $180 every month (after my discount through my job). 700 min plan, unlimited texting + unlimited mobile-to-mobile, two lines with 2GB and one with 200MB. Granted, only my line was eligible for an upgrade this year even though two of my lines got iPhone-4 last year.

I'd call AT&T again and ask nicely about getting your date moved closer and point out what you're spending. They should at least do it for your main number.


I have the same plan as you, with the exception that we have 2 unlimited data plans still and the 3rd line is not a smartphone. My line was eligible for the upgrade even though I got the 4 on launch day last year. One of the other lines got the iphone4 2 months later and that line is not eligible for an upgrade until May! Maybe they were just allowing the "primary" line early upgrade and all other lines wait for the regular cycle?
Rating: 0 Positives / 0 Negatives
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djpic
Posted: 18 weeks ago

I have the same plan as you, with the exception that we have 2 unlimited data plans still and the 3rd line is not a smartphone. My line was eligible for the upgrade even though I got the 4 on launch day last year. One of the other lines got the iphone4 2 months later and that line is not eligible for an upgrade until May! Maybe they were just allowing the "primary" line early upgrade and all other lines wait for the regular cycle?


The primary account gets to upgrade early because that line is where the family plan is being charged. For me, it is usually a year less (so after a year I can upgrade as I am primary). I have 4 iPhones on my account. The primary total is $122/mo. The sub accounts are $38/mo. Because the primary account is paying more (like others have said) ATT makes up for the cost sooner therefore allows you to upgrade early.

A lot of people out there don't realize the true cost of the iPhone and complain about contracts. If you don't want a contract, then pay the full price for the phone like the ORGINAL iPhone back 5 years ago which was not subsidized. The true price is right around $700+. Almost the same cost as an iPad.
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something3153
Posted: 18 weeks ago

This is also a good indication that while android has a larger marketshare (~35% to ~29% IIRC ... numbers are probably off a little) it's due in large part to having been available for so long on Verizon and Sprint while the iphone wasn't on either carrier until earlier this year & a week ago respectively.


Now explain the numbers from Europe.
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