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Verizon's access to the iPhone 4 isn't stopping AT&T from adding new customers

Analysts were expecting the worse for AT&T this quarter. After all, earlier this year, Verizon got its hands on the iPhone 4 which led many to believe that AT&T's fun in the sun was coming to an end.

AT&T is having the last laugh today, however. The company reported record smartphone sales for the first quarter. The 5.5 million smartphones sold during Q1 represented AT&T's third highest total ever for any quarter and represented a 60 percent growth year-over-year. 

Despite the fact that Verizon now has the iPhone 4, AT&T was still able to activate 3.6 million iPhones during the quarter, with 23 percent of those customers -- 828,000 -- being new customers. 

Other notes of interest regarding AT&T's smartphone sales: 

  • Blackberry, Android, and Windows Phone 7 devices now represent roughly 40 percent of AT&T's smartphone sales.
  • Of AT&T's 68.1 million postpaid customers, 46.2 million of them are on lucrative smartphone plans
  • 80 percent of smartphone customers or on FamilyTalk or business discount plans
  • 65 percent of postpaid sales for the Q1 can be attributed to smartphones

Other areas of AT&T business also saw notable gains with its Branded Computing Subscribers (aircards, MiFi, tethering, tablets) seeing an increase of 421,000 to reach a total of 3.4 million. Of the 421,000 adds, tablets accounted for 322,000. 

“We delivered another robust mobile broadband growth quarter for a very solid start to the year,” said AT&T Chairman and CEO Randall Stephenson. “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. 

“Mobile broadband networks are driving unprecedented growth and innovation, and AT&T is playing a leading role in bringing these benefits to customers,” Stephenson continued. “That’s why our agreement to acquire T-Mobile USA, which we announced in March, is so important. Combined, the two companies’ spectrum and network assets will allow us to simultaneously address spectrum issues created by this increased demand and improve customers’ network experience as volumes continue to grow.”

AT&T is hoping to get regulatory approval for its purchase of T-Mobile from Deutsche Telekom, but competitor Sprint is pushing hard to have the deal rejected.



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By MrBlastman on 4/20/2011 11:58:29 AM , Rating: 2
What's in the past, is in the past. The growth they had last year is just that, last year's news. All we really care about is what to expect from AT&T going forward. How are they doing, going forward? Take a look...

http://finance.yahoo.com/news/ATampT-Mobile-Contra...

I quote:

quote:
Ma Bell said it added a net 62,000 post-paid wireless customers in the first quarter, compared to the 512,000 subscribers it added a year ago when it sold the iPhone exclusively.


Post-paid customers? What are these?

quote:
Post-paid customers are those that are billed for their use of a carrier's services on a monthly basis, based on either the terms of a contract or on the amount of services they have used. Most mobile subscribers are of the post-paid type. Not all post-paid customers are bound by contracts, though the vast majority in the U.S. market are.


http://www.mobileburn.com/definition.jsp?term=post...

So wait, they only added 62k people that are paying on a monthly basis vs. 512k a year ago? That is HUGE. Going forward, I'd say AT&T has some problems here. It isn't as rosy as you'd think it is.




By rudolphna on 4/20/2011 1:01:51 PM , Rating: 2
Post paid means they are a contract customer. Opposite customers with pre paid or pay as you go. If you have a contract, 1, 2 year or whatever, you are a post paid customer.


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