Activations of Apple’s popular iPhone 4 handset slowed significantly at Verizon Wireless last quarter. The nation’s No. 1 carrier reported its second-quarter earnings early Friday morning, at which time it revealed its latest iPhone numbers. Verizon Wireless activated 2.3 million iPhone 4 units in its June quarter for an average of just under 177,000 phones each week. In the first quarter, Verizon Wireless activated 2.2 million iPhones, but the device had been available for just seven weeks in the quarter. During that period, the carrier was activating an average of more than 315,000 devices each week. It stands to reason that iPhone 4 sales would slow following the device’s debut with the carrier, but this 44% drop off is a bit steep for the single most popular smartphone on the planet. AT&T announced on Thursday that it activated 3.6 million iPhones in the June quarter, but the carrier does not separate iPhone 4 and iPhone 3GS activations so there is no basis for comparison.
Google’s Android activations aren’t slowing down anytime soon. The search giant announced in its second-quarter earnings report yesterday that there are now 550,000 Android smartphones activated each day. That’s a massive figure, and it’s up from June when Google’s Andy Rubin revealed that his company was activating a half a million devices daily. Rubin also noted in June that activations were growing at a rate of 4.4% week over week. If that growth isn’t stunning enough, get this: just two months ago Google said that it was activating 400,000 devices each day and that there were 100 million Android devices in use worldwide. That number is now up to about 130 million and going by Google’s newly revealed stats, it sounds like 200 million devices isn’t that far out of reach.
Google announced at its annual Google I/O conference last month that as of the beginning of May, the tech giant was activating 400,000 Android new devices each day. That amazing pace seemed almost impossible to keep up, but fast forward to Tuesday and Google’s Android boss shared a new stat. “There are now over 500,000 Android devices activated every day, and it’s growing at 4.4% w/w,” Andy Rubin posted from his Twitter account. Compared to the rest of the market, Android’s explosive global growth slowed recently. In the U.S., Android even lost share last quarter for the first time since 2009 according to IDC. Activations certainly aren’t slowing down though, and we expect Android to be the dominant mobile OS in terms of market share for years to come. More →
In the company’s earnings report on Thursday, Verizon Wireless revealed that it activated 2.2 million iPhone 4 units in the first quarter of 2011. While AT&T reported earlier this week that it activated 3.6 million iPhones in the March quarter — 64% more than Verizon Wireless — the story doesn’t end there. AT&T’s loss of iPhone exclusivity might not have had the immediate dramatic impact some analysts predicted, but Verizon did manage to achieve a milestone right out of the gate: the nation’s top carrier activated iPhones at a much faster pace in the first quarter of 2011 than rival AT&T. While AT&T activated plenty more units, those activations were spread over the full 13 weeks of the March quarter. Verizon Wireless released the iPhone 4 just seven weeks ago on February 10th. As such, AT&T activated iPhones at a rate of 277,000 per week while Verizon Wireless was activating an average of roughly 314,000 units each week. The device was brand new for Verizon, of course, and pent up demand for the iPhone lead to the strongest pre-orders in the carrier’s history. AT&T also included the $49 iPhone 3GS activations in its total, however, so the numbers were bolstered on both sides.
AT&T on Wednesday reported its earnings for the first quarter of 2011. The report is highlighted by impressive iPhone activations that were up by almost 1 million units year-over-year to 3.6 million. Many analysts believed Verizon Wireless’ launch of the iPhone 4 in early February would have a tremendous impact on AT&T’s iPhone business, but the effects were far less significant than expected. First-quarter revenue came in at $31.2 billion, up 2.3% over the same quarter last year, but operating income dropped from $6 billion in the first quarter of 2010 to $5.8 billion in the first quarter this year. The carrier added 2 million wireless subscribers in the first quarter of 2011 for a total of 97.5 million as of the end of March. Thanks in large part to the iPhone 4, AT&T also sold a record 5.5 million smartphones in the quarter. Smartphone users now combine to comprise 46.2% of AT&T’s postpaid subscriber base, which played a large role in pushing wireless revenue up 10.2% over the first quarter in 2010 to $15.3 billion. Wireless data revenue was up by $1 billion in the quarter, and branded computing subscribers — a category that includes tablet, aircard and other data-only product users — were up about 100% over the same quarter last year to 3.4 million. AT&T only sold 322,000 tablets in the quarter, roughly 258,000 of which were booked as prepaid, further supporting the notion that first-quarter iPad sales were far less impressive than analysts had expected. Hit the jump for the full release. More →
In case you haven’t heard, Android is kind of a big deal. Some research firms say it’s already the world’s top smartphone operating system, having recently passed Symbian’s quarterly sales pace for the first time, and just about every firm on the planet is predicting that Android’s market share will continue to grow for the foreseeable future. And it’s not just hot air — Google on Thursday during its first-quarter earnings call revealed that daily Android activations have surpassed the 350,000 mark. That adds up to nearly 2.5 million Android activations each week and about 10.5 million activations each month. Google said in December of last year that it was activating 300,000 Android devices each day, and if it can maintain its current pace there’s no question it will achieve global market dominance for years to come.
No platform in recent history has grown as fast as Google’s Android OS, and now Google has created a quick video to help us visualize the Android phenomenon. The sequence was first shown ahead of former CEO Eric Schmidt’s keynote at Mobile World Congress, and this week Google finally posted it to its Android Developers YouTube account. The video gives us a visual representation of all Android device activations from October 2008, when the platform launched, through the end of December 2010. It also displays helpful indicators just ahead of major device launches, such as the Motorola DROID launch in November 2009. Hit the jump for the video and prepare to be wowed. More →
AT&T on Thursday reported its fourth-quarter 2010 earnings, revealing a modest 2.1% year-over-year growth in consolidated revenue. Profits fell substantially to $1.09 billion or $0.18 per share in the fourth quarter of 2010, from $2.7 billion or $0.46 per share in the same quarter in 2009. Excluding unusual items, however, AT&T earned $0.55 per share — a penny above analyst estimates. The nation’s No. 2 carrier activated 4.1 million iPhone handsets in the quarter, while Apple iPad and Samsung Galaxy Tab activations came in at 442,000 combined. Net wireless subscriber additions totalled a record 2.8 million, and AT&T was home to 95.5 million wireless subscribers as of the end of the year. The carrier added 8.9 million wireless customers in 2010, its best year ever. Hit the break for AT&T’s full press release. More →
Google’s VP of Engineering, Andy Rubin, utilized the social-network Twitter to drop some knowledge on the world. Mr. Rubin notes that his company’s mobile operating system is now being activated on over 300,000 phones each and every day. That’s over 2.1 million phones every week and over 9 million phones every month. Back in August of this year, Google CEO Eric Schmidt announced that Android activations had just passed the 200,000 per day mark — and subsequently set off a little activation brouhaha with rival Apple. For the sake of comparison: the latest numbers from iOS maker Apple (released in September 2010) revealed that there were over 230,000 new iOS activations happening every day.
The verbiage used in both of the companies statements is interesting. Rubin notes 300,000 phones activated each day (indicating the number does not include tablets or other devices running Android, but could include users upgrading), while back in September, Jobs noted there were 230,000 new iOS activations each day (indicating that Apple’s numbers include other iOS devices like iPads and iPod touchs, but not users upgrading).
Either way, Google is now on pace to activate over 10 million Android phones per month. That is an impressive figure any way you slice it. More →
AT&T reported a huge quarter Thursday morning, once again propelled by the success of Apple’s iPhone. The nation’s second largest wireless carrier activated a record 5.2 million iPhone units during Q3 2010 — a huge leap from its previous record of 3.2 million in a single quarter. 24% of those iPhone activations were new customers.
More highlights from the quarter include:
- Record 2.6 million net subscriber additions (30% increase year-over-year)
- 745,000 net postpaid subscriber additions
- 321,000 net prepaid subscriber additions
- 92.8 million total wireless subscribers
- Record-low churn of 1.32% (down 0.10% year-over-year)
- Consolidated revenue up 2.8% year-over-year to 31.6 billion
- Operating income was up $100 million year-over-year but operating expenses were up $700 million
The real takeaway from AT&T’s impressive Q3 is unfortunately a negative one, even in the short term: the iPhone makes up a massive amount of AT&T’s business. Should the carrier lose iPhone exclusivity next year, which looks increasingly likely, the results could be disastrous. More →
Randall Stephenson, AT&T’s CEO, recently spoke at the Goldman Sachs Communacopia XIX Conference and said, ” We’re on pace to set a record for integrated devices.” That’s pretty amazing considering the fierce competition Verizon Wireless and Sprint have been giving each other. Stephenson went on to detail that the iPhone 4, the BlackBerry Torch, and the Samsung Captivate have been “solid drivers for the company.” AT&T’s tiered data strategy also seems to be paying off, at least in the short-term, by moving a lot of people “into the data market who had not been” before. 53% of AT&T’s postpaid subscribers use a smartphone, there are over 7 million connected devices on the network, and even around half a million iPads.
Switching gears to LTE, AT&T’s chief executive offer reiterated a lot of what the CEO of AT&T Operations said last week: AT&T will be launching LTE service for the general public by mid-2011 and will cover over 70 million subscribers by the end of the same year. This will put AT&T in a head to head battle with Verizon Wireless who intends to have over 100 million subscribers covered with LTE by the end of this year. More →
During yesterday’s music-event keynote, Apple CEO Steve Jobs informed the crowd that his company was activating around 230,000 iOS devices every day. The figure 230,000 is of particular significance because just last month, Google CEO Eric Schmidt said that the search giant was activating around 200,000 Android devices per diem. Jobs continued, and quipped, “we think some of our friends are counting upgrades in their numbers.” The implication being made here — albeit not a very subtle one — is that Google was including users upgrading from one Android device to another in their activation figures. In light of the semi-explicit innuendo, Google released a statement that reads: “The Android activation numbers do not include upgrades and are, in fact, only a portion of the Android devices in the market since we only include devices that have Google services.” Just another twig added to the Google versus Apple fire. Speaking of fire, try to keep the flaming comments to a minimum if you would. More →
We told you about Android’s worldwide growth, then about their Q2 U.S. sales figures, so how about some more data! Google CEO Eric Schmidt noted that his company is now activating 200,000 Android handsets every single day. That is up from 160,000 per day in June, and 100,000 in May. We’ve seen several of you in the comments question whether the Android venture was worth it for Google, as they are not directly profiting from the operating systems sales. When Schmidt was asked if the Android venture was worth it, he responded that the idea of Android was to further grow their search business. Schmidt then quipped, “Trust me that [search business] revenue is large enough to pay for all of the Android activities and a whole bunch more.” Google’s CEO was also caught saying he “loved the success of the iPhone.” We’ve got the video conversation queued up for you after the break. More →