AT&T claims 1.9 million new iPhone 3G activations during Q4 2008
First things first: 1.9 million activations is nothing to scoff at. It’s a huge number, and represents AT&T and Apple’s unquestionable success in the smartphone arena. Including the 4th Quarter results, the company can claim 4.3 million total iPhone activations since the introduction of the iPhone 3G, an impressive number by anyone’s standards and a certain earmark of Apple and AT&T’s continuing dominance in the consumer market. The company also revealed, somewhat cryptically, that iPhone users generate “higher revenue” and “lower churn rates”. Good, right? Right. On the other hand, the company also reported that its general earnings were down to $2.4 billion from $3.1 billion just one year prior. The drop is completely understandable, however, given the general recession and the fact that the company seems to be fending off any sort of massive disruption. On another, slightly more comical note, AT&T blamed some of its earnings drop on its “iPhone 3G Initiative” designed to build out coverage and tower infrastructure to cope with the increased network demands. We’re not sure about you, but it doesn’t seem like the aforementioned initiative has hit anywhere close to our home towers…
“…On another, slightly more comical note, AT&T blamed some of its earnings drop on its “iPhone 3G Initiative” designed to build out coverage and tower infrastructure to cope with the increased network demands. We’re not sure about you, but it doesn’t seem like the aforementioned initiative has hit anywhere close to our home towers…”
Actually, it has, in a lot of places, mostly related to 850 overlays.
http://www.howardforums.com/showthread.php?t=1418545
(The 850mhz 3g watchlist…)
AT&T was providing sub-par service long before the Steve Phone came around. I’m sure extra revenue (iPhone) will help them expand, but not at the pace people like me would like who aren’t buying an iPhone due to AT&T’s poor coverage.
(Yes, I know I can unlock it but T-Mobile isn’t that great around these parts either!)
this is a bit off topic but i have a question
if you updated to firmware 2.2.1 did you have any problems??
i did. ALL my music got deleted but the GB’s were converted to other and i had to freaking RESTORE!
@Dick Ward: Irresponsible blanket phrases such as “poor coverage” are a laugh to any critically thinking person on the planet. What works for you (or doesn’t) is solely your opinion _based upon how you use your phone/device_. You can hate the company all you like, but show some integrity. Don’t insult with further drivel, k?
Sorry you had troubles Joe. I did my update last night and it was flawless.
I’ve only seen reports of expansion in the St. Louis area, but they about doubled the 3G coverage (mainly outside of the st. louis area) last October. In addition to all the new 3G markets they added this year, I’m sure that was a pretty penny. While they still have more to go, they have definitely improved data coverage with the “iPhone 3G Initiative”.
1.9 million activiated, but i wonder how many of those are still active? I activated one, and 2 weeks later switched. That would be an interesting number to see.
I am 6,536/1,900,000!
The REAL story is that AT&T’s earnings are down around 30% from Q4 2007 on increased operating costs of around $2 billion more. All the iphone sales don’t mean jack if earnings are down.
@backbeat: Dick is allowed to say that in his experience that AT&T has “poor coverage”. In my experience, AT&T does have poor coverage in rural areas where I do a lot of traveling. Sorry if you bought into the “More bars in more places” lie but that doesn’t change the fact that people like me and Dick get no bars where it matters to us.
@Chris Meyers: The earnings and operating costs stuck out like a sore thumb to me too.
I don’t want to insult the more intelligent readers. 1. Churn takes into account users that switch or leave a carrier. 2. ATT is more than just wireless. So, if earnings are down, why would a sane person assume that it has to do with wireless. The wireline business is continuing to suffer losses as customers ditch land lines for wireless service.
ATT aquired Dobson which factored into the overall numbers for the year. Let’s see how end of year results for the other carrier are after their acquisition hits the books later this year.
Please make intelligent and informed comments. It may be hard but please try.
@RottingCorpse: All have that right, which was my point. Alas, twas not to be expressed in such an integrated manner by your friend, Dick. Or, is that dick-friend?
If a carrier doesn’t work for you, make a different choice, man-up, and act like you’ve got a shred of dignity.
I can’t believe people are still getting the iphone I like having a keyboard to type on. That I can actualy press
Imagine AT&T without the iPhone. Ooof.
With my experience with AT&T – the frequency it uses has poor building penetration. Outside though, and throughout the city and the suburbs coverage is fine. Sometimes going through NJ, they have a few “dead zones” which are annoying. They, however are somewhat small which is even weirder. Like on route I-195, for a good half mile between mile markers 20 & 21, the signal goes from full bars to absolutely zip “No Service”.
Problem with AT&T in even the good reception errors are the dropped calls, call failures (when you first dial) and calls that don’t ring through and go directly to voice mail – even though both phones have full service.
Data has the same problem. With full service and 3G data – if you actually are able to get data is really hit or miss. Other times it can just take forever.
It could be signal noise that the reception indicator doesn’t take into account, or just over-taxed towers and infrastructure.
Let me put it this way. AT&T has roughly 7-8 million more net customers than it did in Q4 2007 and yet earnings are down 30% YOY. That is a shocking statistic. What you realize is that growth and iPhone sales aren’t seeing any kind of incremental benefit, because of the massive infrastructure costs resulting in a dramatic increase in operating costs. They didn’t even break even with 78 million customers than they did with 68 million. Fundamental business is that earnings should not decrease when you increase your customer base dramatically. It is because these iPhone users are requiring substantially more infrastructure to support them. Plus whatever hardware subsidy AT&T is paying for selling it at $199. This is a losing proposition for AT&T.
2008 results are down from 2007 year results because 1) AT&T only “enhanced” data services in 2007 for faster EDGE, but in 2008 they pushed the network upgrades to 3G in *many* places for the new 3G iPhone. 2) in 2007 they did not subsidize the iPhone, but they did in 2008 which had an expense on AT&T. 3) They bought Dobson during the year. 4) and like said above, AT&T’s landline side of the company is losing customers, therefore revenue.
It’s understandable for AT&T to have a lower year over year result.
@MadMike: I’ve experienced the same effect of calls going directly to V/M without the phone ringing. The issue is the phone keeping itself registered with the local towers, which we’ve experienced on Verizon and TMo as well. Dropped calls on AT&T are a result of the combination of handset and network, as the same goes for the other carriers we use.
This is what gets me about the carrier phanbois. All networks are give-and-take and on the basic functions, like these, they are only different as determined by location. No one’s opinion changes this.
@chris meyers
That was a great comment and a very true point.
I’ve really noticed the poor signal penetration in buildings since switching to AT&T last month for the Bold. Sorry, iPhone just wasn’t for me. Verizon and Sprint both seemed to get better signal indoors (for me, that’s one of three hospitals, usually).
I hope the continued tower build out really improves indoor signal. I love my Bold!
@Chrismeyers: It’s an enormous investment during a time of economic depression which is having this effect on AT&T’s bottom-line, not the iPhone, for god’s sake. It’s a completely separate point altogether of what AT&T’s 5-year investment in its relationship with Apple will provide as a net yield. You’re summation is about 2 – 2 1/2 years premature.
@backbeat: Stop being an AT&T apologist.
^Stating that among the primary 4 carriers, it’s essentially a wash dependent upon one’s personal logistics, makes me an apologist?
So much for you showing a shred of dignity.
@Steve Jobs Corpse: Don’t bother arguing with beatmeat. He’s a troll who has already been banned from pretty much every smartphone forum with a shred of moderation. If you get lucky he will call you bitchboy and give you a funny nickname before foaming at the mouth at the mention of the “S” company.
It breaks down like this:
You can say positive things about ATT and Verizon but if you say anything positive about your experience with Sprint you are a bitchboy/shill/troll/etc.
If you say negative things about ATT you are most definitely deserving of a childish insult before being told to grow up.
Any thread on this site or Engadget Mobile is pretty much a guarantee that you’ll be subjected to his brand of smug condescension.
I’ve noticed it as well as a few others on this site. Best just not to feed.
@backbeat: Sorry for not making it clear jerky but I was responding to what you said @Chrismeyers
Apologist.