“AT&T’s loss of its exclusive hold on Apple’s iPhone will make early 2011 ‘rocky, volatile and hard to predict’ for the carrier, CEO Randall Stephenson said in a conference call with analysts on Thursday,” Matt Hamblen reports for Computerworld. “Verizon Wireless will start selling the iPhone on Feb. 10.”
“However, Stephenson said AT&T is ‘fairly confident we will grow through the disruption.’ He pointed to AT&T’s activations of 4.1 million iPhones in the fourth quarter of 2010 as a sign of that strength,” Hamblen reports. “iPhone is still strong and we had one of the best quarters ever,’ he noted, even during a quarter when it was clear the iPhone exclusive would soon end. ‘We sold [more than] 4 million.’ AT&T also had its biggest increase ever in subscribers in the fourth quarter and for all of 2010, Stephenson noted. The carrier now has 95.5 million wireless customers, compared with 94.1 million for Verizon Wireless.”
“Some analysts have predicted that AT&T could lose 10% or more of its iPhone subscribers to Verizon. However, Stephenson indicated that iPhone sales could grow for AT&T. ‘We feel with a little volatility, we can grow… contract subscribers this year,’ he added,” Hamblen reports. “Going into 2011, Stephenson said AT&T expects to increase sales of its Windows Phone 7, BlackBerry, and Android devices. ‘We have not been very aggressive with the Android portion [of the sales mix],’ he said. ‘We will be a heavy participant in the Android market this year.'”
Read more in the full article here.
MacDailyNews Take: Good luck pushing pretend iPhones, AT&T. You’re going to need it.
[Thanks to MacDailyNews Reader “Edward R.” for the heads up.]
I think all this switching of carriers is dependent on how well the cellurar coverage is in a given market. I places where Verizon is better, you will see people switch, in others where AT&T is better, then you will see little to no switching.
I think it’s crazy that AT&T has basically stopped advertising the iPhone on their network.
It’s like they’re being a petulant child, throwing a fit because they don’t have the iPhone exclusive any more.
You could argue, “the iPhone sells itself”, and AT&T doesn’t *need* to advertise it as much. That may be true, but it just seems like wasted money for them to be advertising Android and Windows Phone 7, when that is obviously not what consumers want.
@AT&T – you have the world’s best smart phone. You have the best data speeds of any US carrier. Your network supports simultaneous voice and data. Play to those strengths. Don’t waste your time and money with Android, Blackberry, and the rest.
Not aggressive with Android?!? They don’t promote iPhone, since Apple does that, what else have they been promoting?
Strong sales and no BS buy one get one free program. iPhone doesn’t need it to sell.
AT&T expects to increase sales of its Windows Phone 7
All they need for that is sell ONE.
Lets not forget that some iPhone network switchers will have family plans. Not only will we be taking our iPhone to Verizon, but subsequently the 2 lines (not iPhones) on the family plan will also be moving.
I am waiting for LTE!
@More trouble ahead;
Unless me and my family can access everyday, ordinary features like simultaneous voice and data, none of us are switching.
You might be too old to require this most basic of features, but the screaming kids around me ensure the youth require it!
Verizon- 1980’s technology brought to the most advanced phone on Earth.
No thanks.
AT&T may have decided not to advertise iPhone anymore, since many people who go to buy the iPhone do not know or care about their carrier — they go to Best Buy Mobile and buy a phone (on whichever carrier).
It would be a major waste of money for AT&T to advertise, in ordinary media, an iPhone, only to have those ads get people to buy Verizon’s one.
About the only thing they could do is advertise their strengths (faster network, concurrent voice/data).
As for selling Android, it has done exceptionally well for Verizon (I know, I know, pretend iPhone, not the real thing). There is no reason why Android can’t do reasonably well on AT&T.
The whole point is, with both Verizon and AT&T selling the device, the two will be jockeying for the top slot from now on solely based on their merits. Verizon’s climb to the top spot was gained mainly thanks to numerous acquisitions. AT&T, not so much. Their future will entirely depend on how attractive is their service, coverage and prices.
Dumb pipes, anyone?
“There is no reason why Android can’t do reasonably well on AT&T.”
… other than the fact that AT&T has the iPhone?
Sorry, but no Verizon iPhone for me until it’s 4G (their 3G network is noticeably slower than AT&T’s – multiple phones of other people have proven this to me) and there is simultaneous talk and internet. Talking to a patient/parent and looking something up on the internet (ex. the closest pharmacy to them) is so common that it’s a necessity.
@Predrag
Excellent point re: ability to compare sales of iPhone vs Android phones on a given carrier. Of course, there will still be some skew, since analysts will compare sales of all Android models vs iPhone.
ATT: oh, we leveraged iPhone for 4 mill new subscribers in Q4. Oh, we are going to be more aggressive aboot Android! Uh, how about bettering your network in NYC, SF, and suburbs and aggressively touting the features iPhone won’t have on Verizon?
Fascinating. AT&T CEO Randall Stephenson defines
competition as disruption. Must be the the new
BusinessSpeak to deny/sugarcoat reality.
AT&T richly deserves to lose every penny that Verizon takes away from them. Hopefully, fewer iPhone subscribers will translate into a less-overloaded AT&T network. If not, defections could definitely increase.
@daugav369pils:
Corporations are like hungry predators. All they care about is capturing their prey. Competition is disruption—it disrupts the peaceful enjoyment of their latest kill. Pretending that corporations care about anything but winning at any cost—that’s denial.
Umm guys you realize that some of us have great ATT coverage despite what MDN shovels out?
Fact of the matter is Verizon is not as good as people like to make it out to be. In some areas I’m sure its better, in some areas I’m sure their coverage sucks.
OK
I’d like to see Apple get more aggressive on iPhone pricing at this juncture to bring some heat to the Andorid users.
Apple also has to go after advertising in a bigger way to blunt Google.
@MacDailyNews
at&t still sells iphones!!!! there is no way they would sell androids
Verizon is the one who this whole time was bragging about how “good” android was
Verizon bragging about Android is why they became the number 2 carrier this month in the US in size and User base. They need iPhone to stay relevant. I can’t find a company in all the reports I’ve read that make money selling Android phones. And the one company (Motorola) that was making money guided next quarter at a slight loss. It seems that Apple, Inc. caught all these companies with there pants down. They need to pull their pants up quick.
@Chaz,
Apple will not join the Android makers in a race to the bottom.
@chaz:
On what planet does Apple have to worry about Android or Google? Yes, Google is competing in the same race, but they’re three laps behind! All Apple has to do is avoid falling flat on its face, and they certainly don’t appear to be in any danger of doing that. What’s more, Apple (under Steve Jobs) has never been content to simply win the race. They are constantly redefining the finish line, and will continue to do so at least as long as Steve Jobs is at the helm.
@ MDN: shut up. You are one of the whiners that will leave and u say goodbye. Send all u complainers to VZ and then they have to put up with your sissy complaints. Most VZ iPhones will come from their own customers.
AT&T will continue to do well with iPhone no matter what you little fucker.
My primary need is to make calls. If that works it would be nice to have voice and data at the same time.
AT&T cannot even provide basic voice reliably – constant dropped calls.
You can keep your screaming brats and your luddite AT&T lack of service. The smart ones are off to Verizon.
AT&T may have the ability to support voice and data at the same time. Verizon offers me the ability to check my email in Time Square and other high population density locations that AT&T fails at. Verizon also offers the ability to continue a phone conversation while having full bars. I repeatedly get dropped calls with AT&T while at full bars on my phone.
I have had all major US carriers in the past. T-Mobile coverage stinks, but as long as I had bars the call was good. While with AT&T I have had so many problems with calls that I have not experienced with other vendors “.” good coverage or not.
-Dropped calls with 4 bars and a case on my iPhone
-Lack of data service in high population density areas is common
-Hearing other voices on the line. I didn’t even think that was possible with GSM.
-Dropping the communications to the caller on the other end and being delivered what I can only describe as the voice of “Ghosts from outer space”.
-My girlfriend and I live close to each other and are connected on the same tower while we are both at our homes and talking to each other. About once a month while on the phone with my girlfriend it seems like the tower a half-mile from my house reboots which results in a searching for service icon to appear on my phone for the next 20min.
-My girlfriend reporting that when she calls my phone she receives a generic message that the call can’t be connected. She doesn’t get directed to VM, just a rejected call for 20 min or so then it starts working again.
My baseline here is TMobile. Their coverage is just as bad as AT&T, but if I have bars I have full phone communications; with AT&T I can never be sure. I can’t wait to drop AT&T and I am more than happy to pay the ETF to get away from them.
Yeah, AT&T must be doing really poorly. It’s now the largest mobile carrier in the US. Still sells the iPhone. Windows Phone 7 is killing Android sales in Seattle. WP7’s a pretty good phone operating system. I know because I work for AT&T sales.
I’ve owned an iPhone since it came out. I’ve also owned Blackberries, Palms, Androids, and now an LG Quantum.
Not sure why MDN feels the need to trash AT&T. I’m a longtime MDN reader and poster. Well, I was. The juvenile nature of the site just turns me off.