“iPhone activations at AT&T grew by just 3% in the second quarter this year, and many industry watchers pointed to the flood of next-generation iPhone rumors as a likely culprit for the slowed growth,” Zach Epstein reports for BGR. “BGR has exclusively learned that this is not entirely the case, however, and the stalled iPhone sales at the nation’s No.2 wireless carrier may in fact be by design.”
“Regional retail sales managers at AT&T have been instructing store managers to pump the brakes on Apple’s iPhone,” Epstein reports. “Instructions handed down from corporate state that customers seeking smartphones at AT&T retail stores should be steered away from Apple’s (AAPL) iPhone and towards Android phones or Windows Phone handsets like the Nokia Lumia 900 instead. BGR has confirmed the directive with three independent sources… [Regardless] Apple handsets still accounted for 72% of all smartphones activated by AT&T during the second quarter this year.”
In an update, Epstein reports, “AT&T contacted BGR via email and supplied the following statement: ‘The idea that we would steer any customer away from a particular device couldn’t be more farfetched. Our reps do what it takes to align customer needs with the best device for them. iPhone remains one of our most popular devices, which doesn’t happen by steering people away from it. Our reps are encouraged to try all devices so they are more knowledgeable on our industry-leading smartphone lineup.'”
Read more in the full article here.
MacDailyNews Take: Nice non-denial denial, AT&T.
Nigam Arora reports for Forbes, “From our multiple checks, it is clear that if a consumer walks into one of the several stores where we checked with an open mind, the consumer is not going to walk out with an iPhone.”
“If BGR report is true, understanding AT&T’s reasons for such a directive is important for investors,” Arora reports. “If the main reason is that AT&T does not have enough inventory of iPhone 4 and iPhone 4S ahead of iPhone 5 launch, it is bullish for Apple stock. On the other hand if the reason is the amount of subsidies AT&T provides on iPhones, it is a huge negative for Apple stock.”
Read more in the full article here.
MacDailyNews Take: Apple CEO Tim Cook needs to at least remind AT&T exactly who’s boss, if not tear them a new orifice.
FYI: It’s not just AT&T, either: Hard sell: Verizon Wireless clerks pushing Android phones over iPhone – May 5, 2012
[Thanks to MacDailyNews Reader “Jax44” for the heads up.]
Related articles:
AT&T commits to Google Android phones and tablets – February 7, 2011
J.P. Morgan analyst: Verizon iPhone pre-order sales exceeded 500,000 units in 17 hours – February 07, 2011
RUMOR: Verizon moved one million iPhone units before suspending pre-orders – February 04, 2011
New Verizon iPhone ad debuts: ‘It’s beautiful. It’s intelligent. Even genius.’ (with video) – February 04, 2011
Camping begins for Verizon iPhone; are you in line already, too? – February 04, 2011
Verizon iPhone pre-orders sold out; most successful 1st day sales in Verizon history – in 2 hours! – February 04, 2011
Bloodbath: 54% of Verizon’s Android, BlackBerry users likely to upgrade to iPhone on day one – February 03, 2011
Baig reviews Verizon iPhone: Doesn’t drop calls like AT&T; Best smartphone now on best network – February 03, 2011
Pogue reviews Verizon iPhone 4: Doesn’t drop calls; it’s the holy grail – February 03, 2011
Gruber reviews Verizon iPhone 4: Verizon’s network better for voice, slower for data than AT&T – February 03, 2011
Mossberg reviews Verizon iPhone 4: Better voice, but slower data – February 03, 2011
Canalys: Verizon iPhone will cause dramatic shift in smartphone landscape – January 31, 2011
AT&T CEO: Loss of iPhone exclusivity will be ‘rocky, volatile’
Verizon iPhone fallout begins: Motorola warns of first-quarter net loss, shares fall – January 26, 2011
AT&T quietly offering unlimited data for AT&T iPhone to limit defections to Verizon – January 26, 2011
Two is better than one: New Apple iPhone 4 TV ad touts both AT&T and Verizon – January 23, 2011
Verizon Wireless debuts first TV ad for Apple iPhone (with video) – January 21, 2011
Android who? Verizon shifts marketing muscle to Apple iPhone – January 12, 2011 – January 27, 2011
I had read about this being Verizon’s policy around 6 months ago before we went in to get my wife an iPhone. Sure enough the sales guy started in about Android this and that. When we made it clear that it was ONLY an iPhone we would buy he dropped the crap and sold us the phone.
BTW, it was hard to even tell they sold iPhones on their website. I had to dig around to even find that they did.
Can you imagine how iPhone sales would jump if the actively pushed them?
OK, maybe its just me that isn’t getting this, but why do people walk into an AT&T store again?
Fine, Apple buys AT&T, Verizon, Sprint, Whatever. Great, if you’re American. So anyone care to hazard a guess as to how much Apple would have to pay for network providers in all the countries where iPhones are available in order to create a global network? Say, for example O2 in the UK. And it’s parent company. And it’s global affiliates? Not to mention China…
Does anyone seriously imagine $117billion would be anywhere near enough?
Come and live in the real world that the rest of us inhabit.
In most cases, informed consumers already know they want an iPhone before even walking into the store, and they won’t leave without it. Many consumers do a lot of research, both online, or with friends, colleagues or family members, of what devices they prefer.
This happened to my wife at Best Buy on Saturday. They pushed and pushed for her to buy an Android. She finally told them she was buying an iPhone and if they didn’t want her business she would go elsewhere.
from personal experience, verizon staff always steer you away from the iphone. not just once, but everytime i’ve stopped by to check out the new iphone before upgrading.
I seem to recall that iPhone users use more data than any other group in the smartphone world. Or something like… so AT&T’s network is soooo taxed by data, maybe they don’t want any more iPhone users cuz it’ll make their network even worse. (If that’s possible.)
I have had this happen to me twice now. The first time it was in 2011 when I tried to get an iPhone 4 and I was being steered to a Samsung Galaxy S. from there th AT&T sales guy tried to tell me about “antenna gate” and that getting an iPhone 4 was just not cool like the Nokia, HTC. This time around I inquired for a 4S and same thing. However this time it was an attractive 20 something lady that also wanted to check out the Windows phone. Plus she tried to get me to get a wanna be iPad. Seems I will just my money and buy the phone without contract.
It seems to me that both AT&T and Verizon have probable liability to those customers who buy androids (but wanted iPhones) if Samdung loses the patent suits. Collusion and conspiracy appear likely to me since they both got the idea at once. And new iPhone 5 might be hard to get at ph stores. Dang, we shipped them all to apple stores.