iPhone Represents 77% of All AT&T Smartphone Activations Last Quarter
"Dominant" is probably the only word that could be used to describe how the iPhone fared against competing smartphones on the AT&T network last quarter. On Wednesday, the carrier announced that 77% of all smartphone activations during the third quarter were iPhones.
"We had another impressive quarter with strong earnings growth, record cash flows and solid returns to shareholders through dividends and share buybacks," said Randall Stephenson, AT&T CEO. But the iPhone isn't responsible for only good news these days at AT&T, a carrier that once exclusively controlled iPhone coverage in the US.
As it turns out, the overwhelming majority of third-quarter iPhone sales went to existing AT&T subscribers. All told, AT&T added just 151,000 net new subscribers in the quarter, compared with the average expectation for 358,000, Reuters reported.
Verizon Wireless, in comparison, added 1.5 million net new subscribers for the quarter. "They're clearly losing significant market share to Verizon Wireless," Stifel Nicolaus analyst Christopher King tells Reuters. "It appears, based on these numbers, that Verizon Wireless is really pulling away from the rest of the industry."
For the immediate future, analysts expect AT&T to rely less on gaining new customers and more on growing revenue by persuading existing customers to bring more connected devices over to its network.