AT&T Announces 3.6 Million iPhones Activated in Q1 2011, Resists Verizon Surge

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AT&T today announced financial results for the first quarter of 2011, offering a glimpse at the performance of a significant partner of Apple's for the iPhone and the first data on the carrier's sales since it lost exclusivity in the United States with the launch of the CDMA iPhone on Verizon.

According to the press release, AT&T activated 3.6 million iPhones during the quarter, up nearly a million from the year-ago quarter. The figure has, however, historically included both sales of new devices and re-activations of previously-sold devices either handed down or resold by their owners, making it impossible to correlate the figure directly with Apple's own sales performance.

AT&T reports that 23% of iPhone subscribers were new to AT&T, a figure that has steadily declined over the past year or so as the carrier has increasingly already attracted many of the customers most interested in the device.

Perhaps the most notable piece of data is AT&T's claim that the churn rate for iPhone subscribers was unchanged over the year-ago quarter, indicating that significant numbers of AT&T iPhone customers are not fleeing to Verizon as many observers had expected.

On a broader scale, AT&T reported record smartphone sales of 5.5 million and 10.2% revenue growth in its wireless division. The company's subscriber base also grew by 2 million to reach 97.5 million.

Apple will release its own earnings for the quarter after the markets close later today.

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Top Rated Comments

Doctor Q Avatar
171 months ago
A more plausible explanation is that the I'm-leaving-ATT-as-soon-as-Verizon-gets-the-iPhone blowhards were hardly representative of the market.
I thought all the other blowhards were just like me. :cool:

Here in Los Angeles, I had good reception from Verizon before Apple released the first iPhone. I switched to AT&T to get the iPhone and had poor reception. I switched back to Verizon the first day they had the iPhone and I get good reception again. Family plan with all three contracts. Never had any other significant problems with either company, although I'm disappointed that competition didn't lower prices more.
Score: 1 Votes (Like | Disagree)
bassfingers Avatar
171 months ago
AT&T's talk and surf thing is so pointless

You can talk and surf on verizon if you're on wifi, and when are you ever not on wifi?

Also, when are you ever able to hold a call on AT&T long enough to surf in the first place?

I drop at least 30% of my calls, if not more than that. An iPhone on AT&T is pretty much a fat iPod Touch that costs 80 bucks a month
Score: 1 Votes (Like | Disagree)
bassfingers Avatar
171 months ago
-1 for AT&T when my contract ends.

Nail in the coffin when dropped call research showed that AT&T really does suck
Score: 1 Votes (Like | Disagree)
dacapo Avatar
171 months ago
I wonder how many AT&T users are waiting for the iPhone 5 to come out before making the switch. There is a widespread perception that it will be released in June, and many could be waiting for the refresh before switching.

Count me in with this option. I'm switching to Verizon as soon as iPhone 5 comes out, whenever that is. Unless AT&T offers me an upgrade discount that matches the Verizon new customer price.
Score: 1 Votes (Like | Disagree)
URFloorMatt Avatar
171 months ago
Hmmm... let's see here:

1. AT&T has cheaper monthly pricing.
2. AT&T has rollover voice minutes.
3. The AT&T iPhone works if you are traveling outside of the United States, whereas the Verizon phone does not. The Verizon phone only works in the U.S.
4. The AT&T iPhone lets you use the Internet while you're on phone calls; the Verizon one does not.
5. The AT&T iPhone has significantly & noticeably faster Internet speeds than Verizon.
6. AT&T will give you a free miniature cell tower for your home or office, if you don't get good signal strength in your house.

Yeah, I think I'll stay with AT&T.

1) False, as far as I'm aware.
2) True, but Verizon has Friends and Family, which AT&T does not.
3) False. An AT&T phone generally works if you are traveling in Europe and the Verizon phone does not. A Verizon phone generally works if you are traveling in Asia and an AT&T phone does not. It depends on where you're going. Neither phone has an inherent advantage globally.
4) True, for another few months anyway.
5) Debatable to false, especially when you factor in that AT&T's 3G coverage is so much smaller.
6) Never heard of that before. Interesting though.
Score: 1 Votes (Like | Disagree)
TurnerMan Avatar
171 months ago
Hmmm... let's see here:

1. AT&T has cheaper monthly pricing.
2. AT&T has rollover voice minutes.
3. The AT&T iPhone works if you are traveling outside of the United States, whereas the Verizon phone does not. The Verizon phone only works in the U.S.
4. The AT&T iPhone lets you use the Internet while you're on phone calls; the Verizon one does not.
5. The AT&T iPhone has significantly & noticeably faster Internet speeds than Verizon.
6. AT&T will give you a free miniature cell tower for your home or office, if you don't get good signal strength in your house.

Yeah, I think I'll stay with AT&T.

(The real shame is that the iPhone isn't with T-Mobile... now THAT'S a company with excellent customer service.)
Verizon allows you to make reliable phone calls on a phone. GG? If I didn't give a crap about phone calls I would have bought an iPod Touch.
Score: 1 Votes (Like | Disagree)