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.
Speaking to reporters on Wednesday, AT&T Mobility boss Ralph de la Vega said that iPhone users aren’t defecting to Verizon Wireless any faster than the carrier expected.”We haven’t seen any surprises, and everything is pretty much within our expectations,” de la Vega stated. Verizon Wireless finally launched its first Apple smartphone — the iPhone 4 — last month, and some analysts believed hoards of AT&T iPhone users would flock to Verizon as a result. AT&T, of course, has found itself under much scrutiny resulting the iPhone’s from poor performance on its network in several major metropolitan regions. De la Vega would not share specific numbers so in there may in fact be a mass exodus underway, but early indications do not lead us to believe that is the case. Analysts at Wells Fargo said earlier this week that AT&T is expected to lose 150,000 contract customers in the first quarter of 2011, down from the 225,000 it originally projected. More →
One of our Apple sources has just informed us that it looks like Apple has finalized the code for its upcoming iOS 4.3 release. The build, we’re told, is 8F190 for those keeping track. Maybe we’ll see this release unify the Verizon iPhone OS-wise as well? We’ll probably see this in the wild next week if we had to bet…
According to the founder of Instapaper, a popular Web and mobile service that allows users to read website content offline, the introduction of Verizon Wireless’ iPhone 4 may not be pulling many new customers into the iOS ecosystem. Marco Arment speculates that sales of his popular Instapaper app are likely a good barometer for iOS device sales. Arment finds that app sales see “huge spikes” when Apple releases new iPhone handsets, thanks to the flood of new iOS customers that purchase the phone. When Verizon launched its iPhone 4 earlier this month, however, Instapaper sales were unaffected. Arment poses three possible explanations: Verizon hasn’t sold many iPhones, Verizon iPhone owners don’t purchase many apps compared to other iPhone owners, or Verizon iPhones have been sold mostly to individuals who had previously owned iOS devices and therefor are able to simply transfer previously bought apps to their new phones. He feels the third scenario is the most likely. Arment’s theory is not necessarily supported by sales data revealed exclusively by BGR earlier this month. Alongside launch-weekend sales figures from five major Apple Store locations, we revealed that only about 14% of Verizon iPhone 4 buyers had previously owned AT&T’s version of the Apple smartphone. It is worth noting that data from our exclusive report did not include sales made at Verizon Wireless store locations, however, and it also did not include buyers who had previously owned the iPad or iPod touch. More →
One of our Apple sources has shared some very sensitive information on first-week Verizon iPhone launch sales with us. It’s quite interesting — we’re being told sales are performing a little under what Apple and Verizon anticipated, and we have the data to show it. Below are unit sales totals from five Apple stores combined (including two very, very prominent Apple stores) showing both Verizon and AT&T iPhone 4 sales during the Verizon iPhone’s first five days of availability:
- Thursday: Verizon = 909, AT&T = 539
- Friday: Verizon = 916, AT&T = 680
- Saturday: Verizon = 660, AT&T = 471
- Sunday: Verizon = 796, AT&T = 701
- Monday: Verizon = 711, AT&T = 618
Additionally, we have been told that online pre-orders between Verizon and Apple amounted to around 550,000 units. We also have some statistics on who’s buying Verizon iPhones to share with you: 30% of people buying Verizon iPhones were Android users, just over 25% of people buying iPhone 4 were BlackBerry users, and only 14% of people buying the Verizon iPhone were AT&T iPhone owners. The remaining percent didn’t want to say, didn’t have a smartphone, or didn’t have a phone prior to making their iPhone 4 purchases last week.
Thanks, Lindsey S.!
According to the recent findings of Web app performance watcher Compuware Gomez, the addition of the iPhone 4 to Verizon Wireless’ network has had no noticeable affect on network performance. This could mean sales of the highly anticipated Apple smartphone aren’t quite as impressive as many thought they would be. It could also mean that Verizon’s network is so beastly that it’s gobbling up all that new traffic and laughing at the competition — namely AT&T, whose network has been the target of countless iPhone-related complaints over the past few years. Finally, it could mean that Apple’s move to dump Infineon’s chipset and baseband in favor of a Qualcomm offering was a wise, albeit late decision. Granted, Compuware Gomez is only using four days worth of data in its assessment, so it could mean none of these things. For the time being, however, Verizon Wireless subscribers can rest assured that their network is handling the added stress of Apple’s iPhone 4 in stride. More →
Is AT&T finally realizing that not as many people care about simultaneous voice and data as it once thought? Initially, it seemed like AT&T would endlessly harp on the feature as its only selling point to combat Verizon Wireless’ new iPhone 4, but now it appears AT&T has finally found some new ammunition: the iPhone 3GS. It seems like an odd choice at first; using a year-old device to combat Verizon’s shiny new iPhone 4. The price tag says it all, however — at $49, AT&T’s iPhone 3GS is $150 cheaper than the 16GB iPhone 4 and $250 cheaper than the 32GB model. This makes the device accessible to a whole new demographic, and AT&T has to be quick in addressing this market because once the iPhone 5 launches, Verizon Wireless will have its own previous-generation model to sell on the cheap. Hit the break for a video showing AT&T’s new iPhone commercial. More →
According to an unconfirmed report originating in the Korea Economic Daily newspaper, Apple will become Samsung’s largest customer in 2011. Citing anonymous industry sources, the report states that Apple is poised to spend $7.8 billion on parts from Samsung, which is one of the largest component suppliers in the world. Apple is known to have parts contracts in place with Samsung, but this staggering sum would make the Cupertino-based company Samsung’s single largest customer this year. The report states that liquid crystal displays, mobile application processors and NAND flash memory chips are among the parts Samsung has been contracted to supply for Apple. Apple and Samsung are also rivals in the mobile space, of course, with Apple’s iPhone and iPad competing directly with Samsung’s mobile phone and tablet lines. More →
In a note to investors on Tuesday, RBC Capital Markets General Manager Mike Abramsky issued the firm’s estimates for sales of Verizon Wireless’ iPhone 4 during its first week and first quarter of availability. Best on the firm’s pre-order estimates, RBC believes that first-week sales of Verizon’s iPhone 4, which goes on sale tomorrow, will surpass 1 million units. Channel inventory at launch is estimated to be between 1 and 1.5 million units, and Abramsky thinks the entire inventory may be depleted during the phone’s first week of availability. RBC also projects that between 3 and 4 million Verizon iPhone 4 units will be sold during the first quarter of 2011. Finally, RBC notes that its previous estimates of between 9 and 10 million Verizon iPhones being sold during the 2011 calendar year may be conservative. Verizon Wireless took pre-orders from existing subscribers on February 3rd and stated that the highly anticipated smartphone broke its previous first-day sales record in less than two hours. Pre-sales were available for a total of 17 hours and analyst estimates for total pre-sales on February 3rd are as high as 500,000 units.
Using a bit of guesswork, J.P. Morgan analyst Phil Cusick calculates that Verizon Wireless’ pre-sales of the iPhone 4 may have topped 500,000 units. In a note to investors on Monday, Cusick cited information contained within an earlier press release from Verizon Wireless to take a somewhat educated stab at pre-order totals. According to Verizon, pre-sales of the iPhone 4 broke the carrier’s previous first-day sales record in just the first two hours of availability. Cusick states that the prior record for single-day handset sales was 100,000 units, set by the Motorola DROID last November. Using that information along with the knowledge that Verizon Wireless and Apple continued to take pre-orders for another 15 hours before pulling the pre-order pages from their respective websites, Cusick estimates that over a half-million orders were placed. Cusick believes that Verizon’s iPhone 4 will go on to beat the DROID’s opening day, opening weekend and opening week sales totals, and he estimates that first-quarter iPhone sales will easily top the DROID’s fourth-quarter performance of 1.6 million units, as well. More →
Today is the day a bunch of folks who stayed up until the wee hours of the morning to pre-order will finally begin to receive their Verizon iPhone 4 deliveries. We just snagged ours, and after a bit of a hiccup with activation on the device itself (it failed multiple times until we restarted the handset), it’s been smooth sailing. We’ll obviously follow up with some thoughts on the device versus the AT&T-flavored version, but in the meantime, hit our gallery for an unboxing and some hands-on photos, alright?
We reported that Apple and Verizon Wireless both stopped taking iPhone 4 pre-orders yesterday evening, but that’s not the entire story. Verizon has announced on Friday that first-day sales of the iPhone were bigger than any first-day phone launch ever. Additionally, Verizon notes that this happened between the wee hours of 3-5AM — pretty remarkable, and more proof of just how many people have been waiting for Apple’s smartphone. Hit the jump for Verizon Wireless’ full press release. More →
As of shortly after 8:00PM EST on Thursday, Apple and Verizon Wireless have each stopped taking iPhone 4 pre-orders on their respective websites. Neither company has indicated specifically that pre-orders are sold out — only that pre-sale orders are no longer being accepted. Pre-orders became available for current Verizon Wireless subscribers at 3:00AM EST on Thursday, and Apple and Verizon Wireless had each previously indicated that inventory would be limited. No official details have been made available with regard to how many iPhone 4 units were sold today.