“AT&T, the No. 2 U.S. mobile service, is the only U.S. operator providing cellular connectivity for iPad, of which Apple said it sold 3.27 million units in the second quarter alone,” Reuters reports. “Pacific Crest analyst Steve Clement said this could indicate that many iPad purchasers aren’t bothering to connect the device to the Internet using the AT&T network.”
MacDailyNews Take: Either that, or AT&T’s failing to bill users, which would be a first.
Reuters reports, “‘Half a million at this point would seem low,’ Clement said… However, AT&T’s Stephenson was upbeat about his company’s wireless business and said he is expecting record sales of smartphones such as the iPhone 4 this quarter. ‘In the third quarter we’re on pace to set a record for integrated devices,’ Stephenson told the Goldman Sachs Communacopia XIX Conference on Tuesday.”
“Stephenson said AT&T is seeing improvements in its wired broadband business in the third quarter after a weak second quarter,” Reuters reports. “However, the executive said that high unemployment numbers are hurting its enterprise business and that this business would only improve if hiring improves.”
Full article here.
MacDailyNews Take: Devices like a Verizon MiFi mobile hotspot, for example, can explain why AT&T’s iPads numbers seem low. The numbers may also bode poorly for AT&T Mobility’s future once iPhone is also freed from carrier exclusivity in the U.S.
[UPDATE 8:37am EDT: MacRumors is reporting that AT&T’s CEO used 2nd quarter iPad figures, not the latest figures, which also helps explain the numbers.]
[Thanks to MacDailyNews Reader “Lynn W.” for the heads up.]
Not too sure if those numbers sound so low. Based on launch figures when the 3G version launched it pushed the iPad past the 1 million mark. 300,000+ 3G’s sold over that weekend so that would put the Wifi to 3G ratio at 2 to 1. If you were to extrapolate that trend to the 3,000,000+ sold in the 2nd quarter then you’d be looking at roughly around 1 million 3G iPads. 500,000 activated data plans would be roughly 50% which I don’t think is that bad of a sell through for a device that isn’t mandated to have a 3G plan. Matter of fact, as it was originally touted from AT&T one would be able to switch back and forth from having unlimited, limited, and no data plan, all with no penalty. Of course now that AT&T ended the unlimited plan, I would suspect less people would be inclined to run out to add the plan and may just add it as necessary.
500,000 sounds low if you take into account all 3 million+ iPads, but we all know that all the iPads out there are not 3G models. If I’m correct I believe all the numbers discussed fall from 2Q results including AT&T activations so subsequent sales of 3G models are not included.
I seriously doubt that the Verizon MiFi is having any substantial effect on AT&T 3G activations. If I went the extra mile to spend the $130 on the 3G model why would I spend the extra dough on the MiFi plan? If I planned on getting a MiFi unit (Verizon, Sprint, or Virgin Mobile) I’d just get the WiFi model, save the $130 and put it toward the MiFi service. While I have no statistical data to support this, I believe that anybody who did go out and get a 3G model and tethered it to a MiFi service represents a VERY SIGNIFICANTLY SMALL minority.
I bought 64/3G for storage and GPS.
Don’t want another monthly drain.
I told you so. The pacific crest anal was just doing what anals do, obfuscate to benefit their agenda for the day. Chinese wall between them and their investment arm? BS.
Reuters was as disingenuous as the anal. It’s all about pps manipulation and particularly aiding verizon. Verizon must be in deep you know what.
I have a 3G iPad and have yet to use the 3G functionality. In Nov, however, I will need 3G for internet access and will hook up then. Perhaps many people will not activate their 3G until they have an actual need.
@ silverhawk
If I had an iPad I’d try the Virgin Mobile mifi device. The price is right and it’s pay as you go.”
I’m on my iPad now, it’s Pay as you Go and because I’m on Wifi most of the time $15.00 per month is all I need. When I go on vacation I will up it to 2 gigs for $25.00 still no contract.
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