Apple's Beats brand in April unveiled the Powerbeats Pro, a redesigned wire-free version of its popular fitness-oriented Powerbeats earbuds.
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.
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.
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.
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.
[ 76 comments ]
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96 months ago
Funny.... it's still a gain from normal quarters, but investors only see the dip from the holidays. :rolleyes:
96 months ago
I guess I don't see the big deal, why wouldn't sales be down compared to a holiday quarter?
96 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.
Rinse, repeat, continue enjoying the iPhone.
96 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.
96 months ago
AT&T iPhone "activations" down 43%, but Verizon's were down only 25%. I wonder why?
96 months ago
Geez those sales suck. Probably has something to do with how few new features were unveiled with the 4S.
Wish my company's sales sucked so much! Amazing how many people understand free market principles and the factors contributing to growth...
96 months ago
Compare Q1 2012 with Q1 2011. 20% growth on AT&T. Q4 was a holiday quarter and the quarter with iPhone 4S. Of course the numbers were higher.
96 months ago
I don't get wall street. AT&T activated a million more iPhones this quarter than they did the same quarter last year but somehow that number is weak? It makes no sense to compare this quarter to last quarter which was a holiday quarter with an extra week and the introduction of a new phone. Plus with likelihood of a new redesigned phone later this year maybe some have decided to hold off on upgrading.
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