AT&T Poised to Shatter Quarterly Smartphone Sales Record on iPhone 4S Surge

att logoAT&T today announced that it sold approximately 6 million smartphones during the first two months of the fourth quarter, already approaching the company's record for quarterly sales of 6.1 million units set in the third quarter of last year. In particular, AT&T credits the strong performance of the iPhone 4S for the sales boost.

AT&T’s strong smartphone sales in part reflect a higher number of handset upgrades from customers who were waiting for the launch of a new iPhone. AT&T previously announced that it activated more than 1 million iPhone 4S’ in the first five days the device was available. AT&T said iPhone 4S sales remain strong.

AT&T's press release was accompanied by a regulatory filing noting that the strong sales will result in a negative impact on near-term earnings as the carrier absorbs the large subsidies it pays out for each handset. But beyond the short-term hit to earnings, the company expects those sales to result in improved performance over the long-term as it recoups those subsidies over the two-year terms of customers' service contracts.

The higher number of upgrades indicates that customers have continued to stay with AT&T in record numbers even in a very competitive environment, with more carriers than ever selling the iPhone. Also consistent with AT&T’s earlier guidance, these record smartphone sales are expected to have a near-term negative impact on margins and therefore earnings. However, AT&T expects that these postpaid customers over time will benefit the Company as, historically, postpaid customers produce stable revenue, reflecting their contract term, and higher average revenue per subscriber, including stronger data usage, than other customer categories.

In addition to the iPhone 4S, AT&T also offers the new 8 GB iPhone 4 and is the exclusive U.S. carrier for the iPhone 3GS. Those lower-end devices have also proven popular with customers, continuing to drive sales growth for the carrier.

Related Forum: iPhone

Popular Stories

iPhone 16 Battery Life Feature

iOS 26's New Battery Life Mode Available Only on These iPhone Models

Saturday June 21, 2025 9:02 am PDT by
Last week, we reported that iOS 26 introduces an opt-in Adaptive Power Mode on the iPhone, alongside the existing Low Power Mode. Apple says that Adaptive Power Mode can make "small performance adjustments" when necessary to extend an iPhone's battery life, including slightly lowering the display brightness or allowing some activities to "take a little longer." The full description of...
apple wallet drivers license feature iPhone 15 pro

iPhone Driver's Licenses: These 17 U.S. States Offer Them or Will Later

Thursday June 19, 2025 11:28 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states and Puerto...
ios 26 call holding

iOS 26 Beta is Hiding a New Ringtone — Here's What It Sounds Like

Thursday June 19, 2025 7:25 pm PDT by
Apple is hiding a new ringtone within iOS 26. The new ringtone is an alternative version of the existing Reflection ringtone, which has been the default ringtone since the iPhone X was released in 2017. It was discovered within the code for the first developer beta of iOS 26, but it remains hidden, so you will not find it in the list of ringtones available in the Settings app for now. It...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching in Three Months With These 12 New Features

Saturday June 14, 2025 5:45 pm PDT by
The iPhone 17 Pro and iPhone 17 Pro Max are three months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of June 2025:Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone X through iPhone 14 Pro have a...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching in Three Months With These 12 New Features

Saturday June 21, 2025 2:45 pm PDT by
The iPhone 17 Pro and iPhone 17 Pro Max are around three months away, and there are plenty of rumors about the devices from credible sources. Below, we recap key changes rumored for the iPhone 17 Pro models as of June 2025:Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone X...
Wi Fi WiFi General Feature

iOS 26 Adding Two New Wi-Fi Features, Allows AirDrop and AirPlay Alternatives

Saturday June 21, 2025 7:02 am PDT by
iOS 26 is gaining two new Wi-Fi features, including Captive Assist and Wi-Fi Aware. MacRumors contributor Aaron Perris discovered a reference to Captive Assist within the code for the first iOS 26 developer beta, but Apple has yet to enable the feature. It should be available by the time the software update is released later this year. In his Power On newsletter last month, Bloomberg's...
apple watch ultra 2 new black

Apple Watch Ultra 3 Finally Coming After Two-Year Hiatus

Monday June 16, 2025 8:45 am PDT by
Apple will finally deliver the Apple Watch Ultra 3 sometime this year, according to analyst Jeff Pu of GF Securities Hong Kong (via @jukanlosreve). The analyst expects both the Apple Watch Series 11 and Apple Watch Ultra 3 to arrive this year (likely alongside the new iPhone 17 lineup, if previous launches are anything to go by), according to his latest product roadmap shared with...
All Screen iPhone 2027 Feature 1

iPhone Reportedly Moving to All-Screen Design in Two Stages

Sunday June 22, 2025 3:58 pm PDT by
Apple has long been working towards an iPhone with an all-screen design, and it might finally achieve the feat in a few more years from now. In his Power On newsletter today, Bloomberg's Mark Gurman said that Apple will shrink the size of the Dynamic Island on new iPhone models released next year. A year after that, he expects Apple to release a redesigned 20th-anniversary iPhone model....
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro's Alleged Vapor Chamber Cooling System Partly Revealed

Sunday June 22, 2025 6:37 am PDT by
Apple's upcoming iPhone 17 Pro and iPhone 17 Pro Max models are rumored to be equipped with a vapor chamber cooling system, and a leaker known as Majin Bu today shared a photo of an alleged copper thermal plate for the system. Many high-end Android smartphones like Samsung's Galaxy S25 Ultra are equipped with a vapor chamber cooling system, which can manage heat dissipation inside the...

Top Rated Comments

dvdlovr24 Avatar
177 months ago
LOL at American mobile phone contracts lining AT&T's pockets.

$2000 / 2 years

:rolleyes:

I've never understood this argument. You have to pay a carrier to get service. So I don't see the problem with staying for two years and not having to pay the full price of the phone. It's not like I get a cheaper monthly rate if I pay full price for my phone.
Score: 8 Votes (Like | Disagree)
Diode Avatar
177 months ago
All the carriers in the US are pretty similar. The hatred towards ATT specifically makes no sense. If you want to be an equal opportunity disgruntled customer that's another matter.

Yea sorry if I wasn't clear - I meant cell service in general in the US. They have little incentive to pass savings on to the consumer because there is virtually no competition with how fragmented the networks are.

Thus we pay high fees for crappy service.
Score: 7 Votes (Like | Disagree)
dgree03 Avatar
177 months ago
but no one balks when Apple makes record profits/has premium pricing for their hardware? Ok....

That would require rational. We both know that is scarce around this part of the internetz
Score: 6 Votes (Like | Disagree)
Risasi Avatar
177 months ago
I haven't noticed any worse service, not that it's generally as good as Verizon. But honestly, all cell companies are a pain in the butt...
Score: 6 Votes (Like | Disagree)
dgree03 Avatar
177 months ago
While I would love to pay less - with a FAN discount I am paying about $70 a month. That's 1680 for two years. Now factor that I paid 199 for my phone and I'm guessing that ATT's "price" is - let's say 600. So that's 1280 they are getting for "service" - appx 54 a month. For unlimited data/450 minutes I see that as "ok"

But that's my scenario.

I dont understand why people always talk about cost by adding the total amount over 2 years?

It seems that would not matter because ANY SMARTPHONE you buy will be subject to the same cost. Carriers don't discount service for buying a phone full price. So smart people should always buy on contract unless(like me) they like switching phone services and phones frequently. To me cost over 2 years is irrelevant, if I want a smartphone I gotta pay. Its that simple.
Score: 5 Votes (Like | Disagree)
samcraig Avatar
177 months ago
The difference being - cell service in the US is a borderline government supported monopoly.

People pay the premium because they favor the computer over one from Dell, IBM, Alien the list goes on.

People pay this to AT&T because they have little other choices.

You can't start a new GSM carrier in the US because the FCC won't allow it. You can easily start a new computer company. The threat of entry is why Apple continues to innovate (and drive huge profits) while AT&T drags it's feet and can still pull record profits.


All the carriers in the US are pretty similar. The hatred towards ATT specifically makes no sense. If you want to be an equal opportunity disgruntled customer that's another matter.
Score: 4 Votes (Like | Disagree)