Skip to main content
  1. Home
  2. Mobile

AT&T iPhone sales seemingly unaffected by Verizon

Geoff Duncan
By
iphone-4-apple
Apple

Mobile operator AT&T is no longer the exclusive carrier of the Apple iPhone in the United States, and some industry watchers expected that the arrival of the iPhone on top U.S. mobile carrier Verizon Wireless would put a big dent in AT&T’s bottom line. Not so—or, at least, not yet, according to AT&T’s latest financial results. AT&T says they saw a 10.2 percent increase in wireless revenue for the quarter, with a corresponding 8.6 percent increase in wireless service revenue. And those iPhone sales? Up nearly one million year-on-year to a total of 3.6 million. However, perhaps more significantly, 23 percent of iPhone subscribers were new to AT&T, and churn amongst iPhone subscribers was unchanged since last year.

“We delivered another robust mobile broadband growth quarter for a very solid start to the year,” said AT&T chairman and CEO Randall Stephenson, in a statement. “We posted double-digit wireless revenue growth, and we set new first-quarter records in total net adds, connected device net adds, and smartphone sales. Growth in tablets and other branded computing subscribers also continues to be strong.”

Recommended Videos

Although AT&T says it added 2 million wireless subscribers during the quarter—bringing their total to 97.5 million—the bulk of those additions cam from “connected device” additions. Excluding integrating customers from Alltell and Centennial, AT&T added 62,000 contract subscribers for the quarter, compared to 400,000 during its fourth quarter of 2010. However, industry watchers had been expecting to see AT&T lose at least that many contract customers during the quarter due to the iPhone’s availability via Verizon. That AT&T was able to stave off subscriber losses would seem to indicate the bulk of the current demand for a Verizon iPhone is from Verizon customers—although AT&T might have to work to retain subscribers as of its iPhone user subscriber agreements expire. Overall, AT&T sold more than 5.5 million smartphones during the quarter, the majority of which were iPhones.

Related

Overall, AT&T’s revenue for the quarter totaled $31.2 billion, an increase of 2.3 percent compared to a year ago. However, the company did see its wireless operating income margin drop to 25.8 percent compared to 30 percent a year ago—meaning the company is spending more money to get (and keep) wireless subscribers.

Editors' Recommendations

Topics
Geoff Duncan
Geoff Duncan
Former Digital Trends Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
Best phone deals: Save on the iPhone, Galaxy Z Fold 5, and more
Galaxy S22 Ultra and iPhone 13 Pro cameras seen from the back.

There are a lot of phone deals worth shopping right now. Among the best phones you’ll find top names like Apple, Samsung, Google, and Motorola, and you’ll find them among the best phone deals as well. With so many brands and models out there to choose from, we thought we’d round up the best phone deals to shop right now. Reading onward you’ll find some great ways to save on a new phone, as well as a little information on why each phone may be the right one for you.
Motorola edge 2023 256GB (Unlocked) -- $350, was $600

The Motorola Edge 2023 is (almost) a Google Pixel 8 killer. It features a unique leather back, which feels great, a gorgeous curved display, and solid day-to-day performance. But most of all, it offers excellent battery life and all in an Android package you're gonna love. The current deal price is one of the best we've seen, making it more accessible than ever.

Read more
This new folding phone costs less than half the price of the iPhone 15 Pro Max
ZTE Flip 5G color options.

Earlier this year, ZTE offshoot Nubia showed off a foldable phone, and expectedly, the biggest draw was its supposedly attractive asking price. As U.S. shoppers waited for the phone to hit retail shelves, ZTE launched it in Japan as the Libero Flip. Thankfully, the wait is finally over on this side of the Atlantic, as well.

Nubia's website has recently listed the Nubia Flip 5G for pr-eorder on its website. The best part is the asking price, which is only $500 for the base variant with a respectable 8GB of RAM and 256GB of onboard storage. You can bump the RAM to 12GB and double the storage capacity for an additional $200.

Read more
The 10 best photo editing apps for Android and iOS in 2024
A person holding the Samsung Galaxy S24 Ultra and Google Pixel 8 Pro.

Samsung Galaxy S24 Ultra (left) and Google Pixel 8 Pro Andy Boxall / Digital Trends

Smartphones tend to have pretty good camera systems these days, whether you're talking about the very latest Samsung Galaxy S24 Ultra or the iPhone 14. But even the perfect photo can sometimes need a little additional pizazz. A little extra sparkle can come in the form of a simple color filter, artificially added background blur, or can extend as far as diving into an image's levels and other advanced features. Heck, now that we're in the AI era, it can also include using a tool to transpose yourself into a medieval setting or swapping a face with a friend.

Read more