AT&T Reports 43% Drop in iPhone Activations

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Posted April 24, 2012 at 2:20pm by iClarified

AT&T today reported earnings for 1Q12 which revealed a drop of 43% in iPhone activations to 4.3 million units activated in the quarter.

Notably, this figure is 78% of all AT&T smartphone activations. That's higher than Verizon's 51%.

Between AT&T and Verizon, iPhone activations fell 37% on a quarter over quarter basis.

Read More [via SAI]

AT&T Reports 43% Drop in iPhone Activations

Earnings Highlights:
● $0.60 diluted EPS compared to $0.57 diluted EPS in the first quarter of 2011
● Consolidated revenues of $31.8 billion, up $575 million, or 1.8 percent, versus the year-earlier period
● Wireless operating income margin up to 27.2 percent; wireless EBITDA service margin up significantly to 41.6 percent even with strong smartphone sales
● More than $2 billion in stock buybacks; 67.7 million shares repurchased
● AT&T's growth engines - wireless, wireline data and managed services - represented 78 percent of total revenues and grew 6.2 percent versus the same quarter a year ago, led by:
---19.9 percent growth in wireless data revenues, up more than $1 billion versus the year-earlier quarter
---19.0 percent growth in strategic business services revenues
---38.2 percent growth in consumer U-verse revenues
● Smartphone sales of 5.5 million, exceeding the previous first-quarter record, with about 30 percent of all postpaid smartphone subscribers on 4G-capable devices
● 726,000 total wireless net adds, with gains in every customer category
● Postpaid wireless churn of 1.1 percent, lowest level in seven quarters
● Record first-quarter branded computing (tablets, tethering plans, etc.) net adds of 460,000 to reach a total of 5.8 million, up almost 70 percent versus a year ago
● Postpaid wireless subscriber ARPU (average monthly revenues per subscriber), up 1.7 percent to $64.46
● Wireline business year-over-year revenue comparisons continue to improve
● Wireline consumer revenues up 1.0 percent versus the year-earlier period; seventh consecutive quarter of year-over-year growth
● AT&T U-verse subscribers (TV and high speed Internet) top 6 million; U-verse TV subscribers reach 4 million in service

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Thai - April 24, 2012 at 9:09pm

This is nothing. It's only time for apple to start boosting sales in Korea to counter Samsung and start selling more in china to make up for the jobs that it offered there.

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Greg - April 24, 2012 at 5:02pm

Im glad AT

What??!! How?!!! - April 24, 2012 at 4:02pm

Are people actually getting smarter???

Sohel - April 24, 2012 at 5:42pm

Of Course people are getting Smarter!!!! After 4S beat all sales records, people are nor buying another iPhone when in just months we'll have a brand new one!!!!!!! In Economics its called Anxiety Period. So its more than logic, that if a new one is coming people are still hanging with their "old Devices"... Lets See AT&T reports after the new iPhone comes out...

joyz - April 24, 2012 at 3:44pm

Note this is only AT&T and doesn't reflect other carrier sales or non carrier based sales...

itanium - April 24, 2012 at 2:43pm

Is it because of the "No Service" issue?

Nick - April 24, 2012 at 3:21pm

It's most likely because the new iPhone case out last year and the majority of people already upgraded to it. It's nothing surprising that the most iPhone activations were right around the time of the release of a new model. The activations will be up again in the 4th quarter when the next iPhone is released, shocking!!!