AT&T Sells 8.6M iPhones, Still Lost $6B

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AT&T Q4 2012 iPhone sales hit 8.6 millionAT&T reported selling 8.6 million iPhones during its fourth fiscal quarter for 2013, making up about 85 percent of the company's smartphone sales. 16 percent of its iPhone activations were new customers, indicating Apple's combination iPod and smartphone still draws in new subscribers.

Adding Android OS sales into the mix brought AT&T's quarterly smartphone sales up to 10.2 million units. The company also saw an increase of 780,000 subscribers for the quarter, bringing the total up to 1.1 million with 69.9 percent of its total subscribers -- about 47.1 million -- using smartphones.

About 55 percent of AT&T's smartphone customers are using LTE-capable devices. The carrier has been expanding its LTE coverage areas and expects to provide the faster wireless coverage to at least 250 million subscribers by the end of the year.

In comparison, Verizon sold 6.2 million iPhones during the same quarter with total smartphone activations hitting 9.8 million.

Apple reported selling 47.8 million iPhones during its December quarter, along with 22.9 million iPads. The company also reported US$54.5 billion in revenue with $13.1 billion profit while AT&T reported $32.6 billion revenue with a $6 billion operating loss.

Despite the loss, AT&T CEO Randall Stephenson called 2012 excellent for the company, stating "We grew revenues, increased adjusted earnings per share by 8.5 percent and generated cash from operations at record levels. We used this cash to invest aggressively in the future of our business and returned $23 billion to shareowners through dividends and share repurchases."

The company's operating loss was, in fact, down year-over-year. Q4 2011 saw a $9 billion loss, so a $6 billion loss is a marked improvement.

Mr. Randall expects 2013 to be a good year for AT&T. "We're off to a strong start executing Project VIP, our plan to expand our high-growth platforms to millions more customers, and our 4G LTE network deployment is ahead of schedule, delivering outstanding performance," he said.

Comments

Paul Goodwin

Amazing. Mr Randall thinks the $6B loss on $32.6B revenues was an excellent year. I wonder how much losses the “good year” 2013 will bring. He’s a CEO? Jaheezus.

Rocwurst

So, AT&T reports 85% of their smartphone sales were iPhones and Verizon reports that 63% of their smartphones were iPhones.

I would assume that a large percentage of Sprint’s smartphones were also iPhones considering their huge investment in iPhones last year.

Now together, these three carriers make up 80% of the smartphones sold in the USA, so why have analysts not reported that the iPhone has captured a MUCH larger share of the US smartphone market?

Only Kantar has reported that the iPhone has surged to 51% marketshare in the USA - why is this figure not even larger and why are ComScore’s figures that much lower?

Paul Goodwin

Rocwurst. “...why have analysts not reported that the iPhone has captured a MUCH larger share of the US smartphone market?”

Because those idiots think Apple is missing the boat by not selling $20 phones outside the US.

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