iPhone Activations Drop 43% at AT&T, But Represent 60% of Total Postpaid Phone Sales

AT&T today announced its financial results for the first quarter of 2012, revealing that it activated 4.3 million iPhones during the quarter. The number marks a substantial drop from the 7.6 million iPhones activated last quarter for the launch of the iPhone 4S, but still easily tops Verizon's 3.2 million iPhones sold during the first quarter.

Both Android and iPhone device sales remain strong. iPhone sales were helped by AT&T's 4G network, which lets iPhone 4S download three-times faster than other U.S. carriers' networks. In the quarter, the company activated 4.3 million iPhones, with 21 percent new to AT&T.

While AT&T's activations and sales can not quite be directly compared because activations includes used devices being reactivated on new accounts, AT&T has told us that this is a small difference. Consequently, AT&T's 4.3 million iPhone activations likely corresponds to approximately 75% of its total smartphone sales of 5.5 million units for the quarter.

att iphone activations 1q12
Even more impressively, the continued trend toward smartphone adoption means that the iPhone is representing a growing proportion of total phone sales (smartphone and non-smartphone) at AT&T. The carrier notes that smartphones represented more than 78% of its total phone sales to postpaid customers, meaning that the iPhone accounted for roughly 60% of AT&T's total phone sales to those customers during the quarter.

The significant drop in iPhone activations for AT&T combined with the significant drop at Verizon are weighing on Apple's stock this morning, with the already-weakened share price down another $10 as trading opens for the day. But while investors appear nervous about Apple's iPhone sales numbers for the quarter, the primary driver will be international sales as Apple increased distribution during the quarter. China is by far the largest component to that equation, with the iPhone 4S not only having launched on China Unicom early in the quarter but also having been added by China Telecom in early March.

Apple will report its quarterly financial results after the close of trading today, at approximately 4:30 PM Eastern Time.

Top Rated Comments

Popeye206 Avatar
118 months ago
Funny.... it's still a gain from normal quarters, but investors only see the dip from the holidays. :rolleyes:
Score: 16 Votes (Like | Disagree)
Hastings101 Avatar
118 months ago
I guess I don't see the big deal, why wouldn't sales be down compared to a holiday quarter?
Score: 9 Votes (Like | Disagree)
MadDog31 Avatar
118 months ago
Looks higher than it's been in the last year with exception to the obvious holiday quarter, and of course there's going to be a drop after having a massive quarter like that. Look for the same pattern this year.

Rinse, repeat, continue enjoying the iPhone.
Score: 8 Votes (Like | Disagree)
bad03xtreme Avatar
118 months ago
Aww, poor cell phone companies my heart aches for you. :rolleyes:
Score: 8 Votes (Like | Disagree)
Yr Blues Avatar
118 months ago
a few years ago smart phones were novel, now everyone's on their second or third one. people are getting bored and the global economy is not what it used to be. unless there's a revolutionary new iphone … and not just a minor upgrade … people will be less likely to care.
Score: 7 Votes (Like | Disagree)
lord patton Avatar
118 months ago
AT&T iPhone "activations" down 43%, but Verizon's were down only 25%. I wonder why?
Score: 6 Votes (Like | Disagree)

Top Stories

apple watch ecg

Apple Watch Likely to Gain Blood Pressure, Blood Glucose, and Blood Alcohol Monitoring

Monday May 3, 2021 4:03 am PDT by
The Apple Watch may gain the ability to measure blood pressure, blood glucose, and blood alcohol levels, according to newly-revealed information about one of Apple's chosen business partners. Apple has been revealed to be the largest customer of the British electronics start-up Rockley Photonics, The Telegraph reports. Rockley Photonics has developed non-invasive optical sensors for...
tile sticker e1570533758981

Tile CEO: 'We Welcome Competition From Apple, But We Think It Needs to Be Fair'

Tuesday May 4, 2021 9:51 am PDT by
Just after Apple announced its AirTags, Tile CEO CJ Prober relayed his concerns about competing with Apple in the tracking space, and said that Tile would ask Congress to investigate Apple's business practices specific to Find My and item trackers. Prober this week did an interview with Bloomberg, where he further expanded on Tile's complaints about Apple and why he feels that Tile is...
facebook instargram updated att prompt 1

Facebook and Instagram Ask Users to Enable App Tracking in Order to Keep Services 'Free of Charge'

Sunday May 2, 2021 1:22 pm PDT by
As a way to convince users to enable tracking across other apps and websites, Facebook is deploying the tactic of telling users that they must enable tracking as part of the App Tracking Transparency framework in iOS 14.5 if they want to help keep Facebook and Instagram "free of charge." App Tracking Transparency or ATT is the newest privacy feature to come to iPhone and iPad devices as part ...
fortnite apple logo 2

Epic CEO Tim Sweeney Admits App Store's 30% Cut Is Similar to Consoles, Would Have Accepted Special Deal With Apple

Tuesday May 4, 2021 1:54 pm PDT by
Apple's legal battle with Epic Games is continuing on, and during the second day of the trial, Epic Games' CEO Tim Sweeney continued his testimony against Apple. Sweeney was grilled by Apple's lawyers, and made several points seemingly favorable to Apple. In addition to mentioning how he prefers Apple's iPhone and values Apple's privacy policies that he's aiming to dismantle, Sweeney...
Flat 2021 MacBook Pro Mockup Feature 1

Mini-LED Display Production Improving for Redesigned MacBook Pro Models Later This Year

Monday May 3, 2021 8:33 am PDT by
Apple supplier TSMT, a key vendor involved in the production of mini-LED displays in the newly announced 12.9-inch iPad Pro, has been able to address technical challenges for the production of mini-LED displays to be used in the upcoming 14 and 16-inch redesigned MacBook Pro models. As reported by DigiTimes, TSMT had initially been facing production constraints with the circuit board and...
signal instagram ads3

Signal Shares the Instagram Ads Facebook Doesn't Want You to See

Wednesday May 5, 2021 1:29 am PDT by
Encrypted messaging app Signal has had a series of Instagram ads blocked from the social media platform, after it attempted to show users how much data the Facebook-owned company collects about them and how it's used to push targeted ads. In a blog post, Signal described how it generated the ads to show users why they were seeing them, simply by declaring upfront the information that the...
Foldable iPhone 2023 Feature Yellow

Kuo: Apple to Launch 8-Inch Foldable iPhone in 2023

Sunday May 2, 2021 8:43 pm PDT by
Apple is working to launch a foldable iPhone with an 8-inch QHD+ flexible OLED display in 2023, Apple analyst Ming-Chi Kuo said today in a note to investors that was seen by MacRumors. Based on our latest industry survey, we forecast that Apple will likely launch a foldable iPhone with an 8-inch QHD+ flexible OLED display in 2023, with SDC as the exclusive display supplier and Samsung Foundry...
iOS 14 on iPhone feature emergency

Apple Releases iOS and iPadOS 14.5.1 With Fixes for App Tracking Transparency Bug, WebKit Security Issues

Monday May 3, 2021 10:04 am PDT by
Apple today released iOS and iPadOS 14.5.1, minor security updates that come just a week after the release of the iOS 14.5 update. There is also a companion watchOS 7.4.1 update for Apple Watch and an iOS 12.5.3 update for older iPhone and iPad devices that don't support Apple's latest operating system versions. According to Apple's release notes, the update fixes a bug with App Tracking...
airtags teardown tile mat galaxy smarttag

iFixit Shares AirTag Teardown Revealing 'Impressively Compact' Design Compared to Tile Mate and Galaxy SmartTag

Sunday May 2, 2021 4:54 am PDT by
iFixit has shared the first of its two-part series in tearing down Apple's AirTag item tracker, revealing that Apple had to make impressive design decisions to achieve its small design, including rethinking the speaker layout. For comparison, iFixit compared Apple's AirTag to the Tile Mate and the Samsung Galaxy SmartTag. Compared to the competition, AirTag is the smallest in size, with the...
maxresdefault

Hands-On With Brydge's 12.9-Inch iPad Pro Keyboard With Trackpad

Tuesday May 4, 2021 11:48 am PDT by
Brydge has been making keyboards for Apple's iPads for years now, and the newest model, the Brydge 12.9 MAX+, is compatible with the third, fourth, and fifth-generation iPad Pro models, so it works even with the new mini-LED iPad Pro. Subscribe to the MacRumors YouTube channel for more videos. In our latest YouTube video, we checked out the new Brydge 12.9 MAX+ to see if it's a viable...