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.

Top Rated Comments

(View all)
Avatar
107 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...
Score: 4 Votes (Like | Disagree)
Avatar
107 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.
Score: 4 Votes (Like | Disagree)
Avatar
107 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.
Score: 3 Votes (Like | Disagree)
Avatar
107 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.
Score: 3 Votes (Like | Disagree)
Avatar
107 months ago
He we go with the weekly, thoughtless, unintelligent AT&T Haters thread.
Score: 3 Votes (Like | Disagree)
Avatar
107 months ago
AT&T Got a Head Start on the Other Telecoms

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.
Score: 3 Votes (Like | Disagree)

Top Stories

iOS 14 Widgets Offer iPhone Users Creative Home Screen Ideas

Sunday September 20, 2020 8:43 pm PDT by
In iOS 14, Apple introduced ‌the concept of Home Screen‌ widgets, which provide information from apps at a glance. Widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. Despite the relative lack of 3rd party widgets at launch, iOS users around the...

iPhone 12 Lineup Rumored to Be Named 'iPhone 12 mini,' 'iPhone 12,' 'iPhone 12 Pro,' and 'iPhone 12 Pro Max'

Monday September 21, 2020 5:24 am PDT by
Leaker known as "L0vetodream" has today shared the alleged naming for the upcoming iPhone 12 lineup on Twitter. The tweet proposes that the upcoming iPhone 12 models will be titled "iPhone 12 mini," "iPhone 12," "iPhone 12 Pro," and "iPhone 12 Pro Max." The names likely correspond to the three expected sizes of iPhone 12, with the 5.4-inch model being the iPhone 12 mini, the 6.7-inch model ...

Hands-On With the New Apple Watch Series 6 and Apple Watch SE

Friday September 18, 2020 1:19 pm PDT by
Today's the official launch date for the Apple Watch Series 6 and the Apple Watch SE, both of which Apple announced on Tuesday. We picked up a couple of the new models and thought we'd give them a quick look for MacRumors readers thinking of ordering a new watch. Apple Watch Series 6 & Apple Watch SE Hands-On! When it comes to design, both the $399 Series 6 and the $279 SE look just like...

iOS 14 Picture in Picture No Longer Working With YouTube's Mobile Website in Safari [Without Premium]

Friday September 18, 2020 12:21 pm PDT by
Apple in iOS 14 added Picture in Picture to the iPhone, a feature designed to let you watch a video in a small screen on your device while you continue to do other things on the phone. When Picture in Picture was working with YouTube The YouTube app doesn't support Picture in Picture, but up until yesterday there was a functional workaround that allowed videos from YouTube.com to be watched...

When Will the iPhone 12 Launch? Here's What We Know

Wednesday September 16, 2020 6:12 am PDT by
Yesterday's "Time Flies" Apple event saw the release of the Apple Watch Series 6, Apple Watch SE, iPad 8, and iPad Air 4, but no new iPhone models. Rumors before the event strongly alleged that it would not see the unveiling of new iPhones, with many reports pointing to an October launch. The lack of new iPhone models yesterday seems to confirm that the iPhone 12 lineup will not appear...

Here's How You Can Download iOS 14 and iPadOS 14 Around the World [It's Out]

Wednesday September 16, 2020 2:36 am PDT by
Apple's official public release of iOS 14 and iPadOS 14 dropped on Wednesday, September 16, just a day after the company released the Golden Master to third-party developers. Also set to be made available to the general public for the first time are watchOS 7 and tvOS 14. Getting Started With iOS 14 Video Click image to watch iOS 14 Getting Started While that's left a lot of developers...

AirPods Studio Rumored to Come With U1 Chip, Ultra-Wideband Said to Be Vital to Future Apple Ecosystem

Sunday September 20, 2020 6:17 am PDT by
Proven leaker known as "L0vetodream" has today shared a range of information about the ultra-wideband U1 chip in Apple's upcoming AirTags item trackers and AirPods Studio headphones. The first of a series of tweets shared today simply stated that AirPods Studio will contain an ultra-wideband U1 chip. It seems likely that the U1 chip would be used in AirPods Studio to track the location of...

Kuo: Apple to Accelerate Adoption of Mini-LED Displays in iPad and Mac Notebook Lineups

Sunday September 20, 2020 10:00 pm PDT by
Increased competition among Apple's suppliers for mini-LED display chips will accelerate the company's adoption of the advanced technology in its iPad and MacBook lineups, according to a new research note from analyst Ming-Chi Kuo seen by MacRumors. Kuo says that while Epistar had been predicted to be the exclusive supplier of mini-LED chips for Apple products in 2021, Sanan Optoelectronics...

Top Stories: Apple Event Recap, Apple Watch Series 6, Redesigned iPad Air, and More

Saturday September 19, 2020 6:00 am PDT by
This week's news was obviously dominated by Apple's media event and the launch of iOS 14, but there was a lot to digest, so check out our summary below for the high-level view of the past week. With the exception of the massively redesigned iPad Air, all of the new hardware introduced this week is starting to appear on store shelves and on customers' doorsteps, while all of the new software...

Apple Updates AirPods 2 and AirPods Pro Firmware to Version 3A283

Monday September 14, 2020 11:24 am PDT by
Apple today released new 3A283 firmware updates for the second-generation AirPods and the AirPods Pro. The second-generation AirPods are being updated from the 2D15 firmware they were previously running, while the AirPods Pros are being updated from the 2D27 firmware they had installed previously. Apple does not provide details on what's included in refreshed firmware so we don't know what's ...