A&T and Verizon CQ1 iPhone sales worse than we expected: AT&T activated 4.3M iPhones in Q1 (-43% Q/Q) vs. our expectation of 6M. Last week Verizon reported activating 3.2M (-24% Q/Q) vs. our expectation of 4M. iPhone share fell slightly at both (from 81% to 78% at AT&T; from 55% to 51% at Verizon). We believe this bodes poorly for Apple's CQ2 guidance. Instead of 32M iPhone shipments in CQ2 we now believe 28M-30M is more likely (we currently estimate 32M).