AT&T released its second quarter results recently and the company appears to be doing well thanks to the ever increasing demand for smartphones. However, what is impressive is that the number of iPhones it sold this quarter was a whopping 3.7 million, out of which 22 percent were new subscribers. This comes as a reasonable surprise as iPhone sales haven’t been up to expectations with potential customers anticipating the release of a new version in the holiday season and putting off their purchase of an iPhone till then. AT&T has sold a total of 5.1 million smartphones this quarter, out of which nearly a third are 4G capable.
It is the iPhone figure that continues to impress because of the alleged slump in the overall sales of the iPhone, according to Apple figures. AT&T has held a monopoly in selling the iPhone in the American market since the first device was released in June 2007. Only in February 2011 did Verizon enter the fray followed closely by Sprint. Despite the competition, AT&T has held its lead but only recently it started showing signs of a sales-slowdown of the iPhone.
In the 4th quarter of 2010, AT&T sold 4.1 million iPhones and in the first quarter of the next year, the number fell to 3.6 million while Verizon sold 2.2 million devices. The subsequent quarter showed no change for both carriers but the third quarter of 2011 saw a drop in sales for both the carriers as people were expecting the release of a new iPhone in the 4th quarter, which saw sales grow to 7.6 million on AT&Ts end and 4.3 million at Verizon. These numbers drastically fell in the first quarter of this year and further slid for both carriers in the second quarter. However, the interesting thing is that the iPhone sales have always improved quarter on quarter and are showing no signs of stalling.
Though AT&T continues to have a lead over Verizon, it is losing its grip and Verizon’s share is gradually increasing. What will be interesting to see is whether the customers who are up for renewal soon enough because of the expiry of the two year contract from AT&T, will stick with it or go for another subscriber. This result will determine the fate of the iPhone with AT&T.
