Skip to main content

AT&T iPhone sales seemingly unaffected by Verizon

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.”

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.

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

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…
The best iPhone 15 Pro Max cases in 2024: the 20 best ones
Renders of iPhone 15 Pro Max cases next to each other.

The iPhone 15 Pro Max is the latest smartphone from Apple and boasts a 6.7-inch screen and a durable titanium casing. However, even with its sturdy design, the phone can still suffer from accidental damage such as cracking or shattering. To ensure that your phone stays in good condition and lasts longer, it's important to invest in a protective case.

To help you with your selection, we have put together a list of the 20 best iPhone 15 Pro Max cases. These cases have been carefully selected based on their durability, design, and functionality. Whether you're looking for a slim and stylish case or a heavy-duty one that can withstand extreme conditions, we've got you covered.

Read more
When will Apple release iOS 18? Here’s what we know
An iPhone 14 laying face-down on a wood table.

Apple's annual Worldwide Developers Conference (WWDC) will start on Monday, June 10. During the conference keynote, the company is expected to unveil new software updates for its major products, including iOS 18 for iPhones.

iOS 18 is expected to be a major iPhone update, likely ushering in a new design and AI features. If you are wondering when you can get your hands on the latest software version, here's everything you need to know about iOS 18's release date.
When will the iOS 18 beta be released?

Read more
iPhone 16: news, rumored price, release date, and more
A person holding the Apple iPhone 15 Plus and Apple iPhone 15 Pro Max.

Apple iPhone 15 Pro Max Andy Boxall / Digital Trends

We're a few months removed from the launch of the iPhone 15 and iPhone 15 Pro, so you know what that means: iPhone 16 rumors are in full force. Things are heating up, from design leaks and rumored specs to camera changes and more.

Read more