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AT&T iPhone sales unaffected by Verizon launch

AT&T announced its first quarterly earnings for 2011 and sales of the iPhone 4 remain strong. According to the earnings statement, AT&T activated 3.6 million iPhones in the quarter ending March 31. This is a one million year over year increase and a slight drop from the 4.1 million activated in Q4 2010. Overall, AT&T added two million new subscribers to climb to 97.5 million total subscribers. This figure is also down from the 2.8 million subscribers AT&T added in the closing quarter of 2010.

These sales numbers were recorded in the same quarter Verizon Wireless launched its version of the iPhone 4. Despite predictions the Verizon iPhone would lead to a mass exodus from AT&T, the wireless carrier confirmed that iPhone churn remained the same year over year. In fact, about 23 percent of iPhone buyers in Q1 were new to AT&T. Apple reports it quarterly earnings today at 5 p.m. ET and Verizon reports its earnings tomorrow. It will be interesting to see where the remaining iPhone numbers fall.



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AT&T announced its first quarterly earnings for 2011 and sales of the iPhone 4 remain strong. According to the earnings statement,...
 

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Abbaroc

well obviously.. no one wants a non gsm iphone

April 20 2011 at 9:18 PM Report abuse rate up rate down Reply
Jeff B.

Every time I consider jumping back to Verizon, they do something stupid. I haven't been a customer since the original iPhone and they still manage to infuriate me with their GOTCHA billing and business practices.

The latest was a postcard a couple days ago about bogus premium SMS charges. They said that they contacted me because they thought I was billed by these scam premium SMS companies, and they'd like to refund the charges. But to do so, I need to file a claim with the date, the number and the amount, which they'll verify against their list of scam premium SMS companies.

Now they already have this information, so what they're saying is "we know we owe you money, but unless you ask for it back and prove to us that you have us dead-to-rights, we're not going to give it to you".

It's crap like that Verizon, that makes me happy to settle for less-than-perfect coverage on AT&T as opposed to doing business with you.

April 20 2011 at 3:26 PM Report abuse rate up rate down Reply
owenmhv

when my contract is up in June, I'm gone from AT&T. Not their fault, just insufficient coverage for the price I pay. Since I get 80% coverage, they should only charge 80% of what someone with full coverage gets.

April 20 2011 at 1:50 PM Report abuse rate up rate down Reply
geomikes

I'm waiting for the next phone and my contract to be mostly up and then I'm jumping ship from AT&T.

April 20 2011 at 1:12 PM Report abuse rate up rate down Reply
@kcnci

On another AOL site, @HuffingtonPost: New AT&T Phone Contracts Dive In 1Q - "NEW YORK -- AT&T subscribers are still buying iPhones, but with Verizon now selling the phone too, it seems to have lost its power to draw new subscribers to AT&T.

AT&T, the country's largest telecommunications company, reported Wednesday the addition of 62,000 net new subscribers on contract-based plans in the first quarter, a record low. A year ago, the figure was 512,000."

Perspective, I guess.

April 20 2011 at 12:36 PM Report abuse rate up rate down Reply
1 reply to @kcnci's comment
Kelly Hodgkins

I looked at iPhone sales and subscribers from AT&T, not the ovreall subscriber numbers like Huffington Post. I focused on iPhone-only because analysts were speculating the Verizon iPhone was going to cause AT&T iPhone sales to plummet.

If iPhone owners were leaving in droves, the iPhone churn rate would be through the roof and it wasn't. iPhone churn rate was the same year over year, so any decrease in number of subscribers is not the result of iPhone owners jumping ship to AT&T.

Maybe Android, BlackBerry or feature phone owners are leaving AT&T, but from AT&Ts stats, the iPhone owners seem to be holding steady.

April 20 2011 at 12:53 PM Report abuse rate up rate down Reply
simpsky

The shoe that hasn't dropped is expiring contracts. What percentage of AT&T's customer base is waiting out a contract in order to make the jump?

April 20 2011 at 10:35 AM Report abuse rate up rate down Reply
actsasgeek

This might be too optimistic on AT&T's part. The iPhone 3GS was introduced in June 2009 which means that the 2-year contracts are about to expire. Many with iPhone 3's skipped iPhone 3 GS because they were locked into 2-year contracts but bought the iPhone 4 a year later (June 2010). This means that from June 2011 until the 2-year anniversary of the Verizon getting the iPhone, there is going to be a steady trickle of people whose contracts with AT&T are expiring who never had a chance to pick Verizon...which huge spikes in June 2011 and June 2012.

Based on my boss's glowing recommendation of Verizon's service of AT&T, I'll probably switch my entire household in June from 3GS's to 4's and AT&T to Verizon.

If I were AT&T, I know when and where I'd concentrate my iPhone advertising dollars.

April 20 2011 at 10:08 AM Report abuse rate up rate down Reply
Xan

Why would you even buy a smart phone and not have it on a much faster network...if you know anything about cell band technology and you live in an area where AT&T is not throttled by overuse there is no reason why you shouldn't have AT&T. I live in the Tampa, FL area and I have no problems and I know I get faster download and upload speeds than Verizon Droid/iPhone users.

April 20 2011 at 10:03 AM Report abuse rate up rate down Reply
Charlie

Suprising, considering that everyone I know on AT&T is have around a 75% call drop rate, including me. ( Long Beach, CA ).

April 20 2011 at 10:01 AM Report abuse rate up rate down Reply
Matthew W.

Guess the rest of the country doesn't hate AT&T as much as the TUAW staff, despite your best efforts.

April 20 2011 at 9:49 AM Report abuse rate up rate down Reply
1 reply to Matthew W.'s comment
The Jesus

I don't know how much it would affect the data, but I'd like to see their earnings broken down into the latter half of Q1 (as the VZ iPhone was only out for the second half). I wonder how many of those 3.6m iPhones were sold before AT&T had competition. Remember right after the holidays when AT&T dropped their 3GS price to $50?

April 20 2011 at 4:25 PM Report abuse rate up rate down Reply
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