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

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.

Related roundups: iPhone 5c, iPhone 5s, iPhone 6

Top Rated Comments

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27 months ago

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...
Rating: 4 Votes
27 months ago
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.
Rating: 4 Votes
27 months ago

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.


AT&T still offers the BEST network for iPhones, at least in the US.

- They've been GSM out of the box, since 2007. Tons of AT&T iPhones have been unlocked and are used all over the world, and that helps with resale value or if you decide to switch networks (it makes the AT&T phone worth more).
- They've been able to do Voice & Data at the same time. This isn't a huge deal, but it helps greatly if you're on speakerphone and want to look something up.
- They have the fastest download speeds. Even if iPhones on other networks were getting 100% speed, the AT&T iPhone would still be twice as fast as them.
Rating: 3 Votes
27 months ago
I like how AT&T list iPhone "activations" instead of actual sales.
We all know a chunk of those activations are not new iPhone sales, but new activations for a used device.
Rating: 3 Votes
27 months ago
He we go with the weekly, thoughtless, unintelligent AT&T Haters thread.
Rating: 3 Votes
27 months ago
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.
Rating: 3 Votes
27 months ago
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.
Rating: 3 Votes
27 months ago
And now they want to penalize their customers by charging extra for FaceTime data...screw them.
Rating: 3 Votes
27 months ago

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.


Pound sand? That's a bit overdramatic :)

Apple went to Verizon in mid 2005, months before having a touch prototype (Apple was still thinking of doing an iPod clickwheel type phone at the time).

So consider Verizon's position: they hear about the awful ROKR coming out, and now Apple wants to make another phone with no third party apps, no GPS, no 3G... oh and they don't want the carrier to subsidize it for the customers, but instead give that subsidy to Apple. Sounds about as attractive as roadkill.

Of course, now I'm being dramatic, athough that's exactly the deal Apple later made with AT&T.

In any case, Verizon didn't throw them out; reportedly they just kept putting Apple off until Apple finally stopped calling a year later.

And only AT&T would take the iPhone. Hence their 3 year exclusivity deal.


Even AT&T (Cingular) didn't take it right away. They knew about Apple's plans a half year before Verizon did, and yet they didn't sign a contract with Apple for another year and a half, in mid-2006.

By that time Apple was halfway through their project, with no one wanting their phone, so AT&T was able to force an incredibly long exclusive... which, as it turned out, gave Android plenty of room to gain a foothold in the US, that might otherwise not have happened.
Rating: 2 Votes
27 months ago

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.


Verizon took advantage of my wife's grandpa because he is old. Sold him a USB stick for his computer so he could get Internet on his farm. He did not even know how to plug the thing in. He paid $40 per month for three years for 250MB allotment of data per month which he never used. My mother-in-law tried to cancel it from afar but they needed the account holder to do it. When I was visiting last I got them on the phone and one Verizon rep finally helped but then she had to transfer me to the person who tries to talk you out of closing an account.

I told them Grandpa was just buying an iPad with Verizon built in (AT&T has no coverage where he is). She asked if I wanted to transfer his $40 per month plan. I said "no" because the iPad plan was 4 times as much data for half the price with no commitment. She tried to tell me that there would be activation fees and I had to tell her that it was not so under the prepaid iPad plans. She then tried to tell me that they had changed their data plans recently and there would be, but I told her that I had indeed read the terms of their new data plans and that they were indeed still advertising commitment-free $20 per month for 1GB of data on the iPad. Finally, she made me put Grandpa back on the phone to get authorization once more to cancel the account. Now, my only hope is that the account really does cancel and they stop automatically withdrawing $40 per month from his bank account for a measly 250MB of data. My fear is that Verizon will call him back and try to get him to change his mind and reactivate his account during some kind of "where did we go wrong survey".

So while AT&T is evil, so is Verizon. Both are necessary evils until we get a carrier with decent coverage who puts the customer first.
Rating: 2 Votes

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