AT&T Has More iPhone Activations Than Verizon

Last week, AT&T and Verizon both posted their quarterly results as well as the number of iPhones that they have activated on each of their networks. Surprisingly, the mobile phone carrier with the most iPhone activations is AT&T.

AT&T reported that it has activated 3.6 million iPhones on its network this quarter, while Verizon has only activated 2.3 million. All in all, that adds up to 5.9 million new iPhones, which constitutes about 30 percent of the 20.3 million iPhones that Apple reported that it has sold during this past quarter.

So, are you surprised that AT&T has activated more iPhones than Verizon? I definitely was! So, how have they done it? Well, the advantage that AT&T has over Verizon is that it offers its customers both the iPhone 3GS and the iPhone 4. Verizon is only offering its customers the iPhone 4. AT&T is also offering the iPhone 3GS at a discounted price. Customers can get a new iPhone 3GS for $49.99 or pick up a refurbished device for $9 with a two year contract. That is one heck of a deal! Unfortunately, AT&T did not break down its quarterly numbers to show how many of each version has been activated. They just lumped the numbers all together.

Although Verizon does not have the most iPhone activations, the company did add more subscribers than its rival, AT&T. According to the company, they added more than 2.2 million people to their carrier, clearly beating AT&T who only added 1.1 million new users. Verizon now can boast 106.3 million subscribers, while AT&T sits behind them with 98.6 million users.

Breaking down the numbers even further, only 36 percent of Verizon’s subscriber base is made up of smartphone users. Although this is up from 32 percent last quarter, AT&T is way ahead. Almost 50 percent of the AT&T client base is made up of smartphone subscribers. So why does all of this matter? Well, smartphone subscribers tend to lead to more revenue for the company, due to data plans that users must take out when they choose a smartphone. So, although Verizon had more customers than AT&T, AT&T made $31.5 billion in total revenues, while Verizon came in at $27.5 billion.

Reports have said that when the next generation iPhone is made available, it will be offered by both mobile carriers. They have also reported that it will be a world phone, complete with the capability to run on GSM or CDMA networks. So, once the “iPhone 5” is released, the iPhone 4 will most likely be offered by both carriers at a discounted price. This could help to even the activation numbers, but who knows? Apple could decide to switch things up and offer the newest version of the iPhone through another phone carrier such as Sprint. That could really skew the numbers for both AT&T and Verizon. For now, we will just have to sit back and wait for Apple to release the new and improved iPhone. Hopefully, the wait will not be much longer.

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Is Verizon Really Stealing THAT Many of AT&T’s Customers?

When Verizon Wireless announced that it would be adding the Apple iPhone to its smartphone lineup, analysts predicted that the amount of AT&T iPhone customer base that switched over to Verizon could add up to as many as 50 percent. So has this really happened?

As of now, the figures concerning the iPhone user switch rate from AT&T to Verizon have not yet been released; however, early speculations seem to be saying that about 14 percent of Verizon iPhone preorders were AT&T iPhone owners who were switching over.

Although that sounds like a pretty hefty amount of customers for mere preorders, it really doesn’t seem to be bothering AT&T Mobility and Consumer Markets President and CEO Ralph de la Vega. Earlier this month de la Vega said that AT&T’s mobile customer losses were within the company’s expectations.

According to reports from Mobclix, two out of every three AT&T iPhone customers who switched to Verizon’s iPhone paid the termination fee that is required by AT&T. These fees include: $325 for AT&T’s smartphone, minus $10 for every month that a user has been on the company’s two-year contract. This can be quite a chunk of change, and in addition to that users still have to go and buy a new iPhone from Verizon.

Mobclix is also saying that 14 percent of iPhone 4 users are now calling Verizon Wireless their home. Out of all the iPhone users in the world, Verizon’s customer base makes up about 4 percent. All of this information from Mobclix is being pulled from the company’s Mobclix Exchange, which is Mobclix huge advertising marketplace that goes ahead and matches different developers with any interested advertisers in a bidding atmosphere. Mobclix did some research to see why AT&T iPhone customers were switching over to Verizon.

What they found just confirms everything that every other survey about AT&T iPhones vs. Verizon iPhones has discovered. The top reason for the switch was reception quality. In the survey of 600 different Verizon iPhone users, Mobclix found that the second and third most popular reason that customers were deserting AT&T was because of “personal hot spots” and “reputation.” The personal hot spot that AT&T users were missing is a feature that allows the iPhone to serve as an Internet host for up to five devices connected via Wi-Fi, or one single device connected via Bluetooth or USB.

Although this was an initial concern, just recently AT&T released its iOS 4.3 update for iPhones that allows AT&T iPhone users to have the same personal hot spot abilities. Mobclix also went on to research where there were the highest areas of Verizon iPhone usage. They found that Los Angeles, San Francisco, New York City, Boston, Chicago and Seattle where the cities with the most usage…big surprise.

I guess we’ll just have to see if Mobclix is accurate when the final official numbers come in. No matter, Verizon really seems to have made a dent in iPhone users that I assume will only increase from here on out.

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Will BlackBerries and Androids Soon Be a Thing of the Past?

The United States has just released the results of a recently conducted, extremely extensive survey of AT&T and Verizon Wireless smartphone customers. The results seem to suggest that come February 10, the day that Verizon’s iPhone is released, there will be quite a few drastic changes in the smartphone world.

The survey that was conducted by uSamp, “one of the world’s fastest growing technology and online sample companies,” who questioned 727 AT&T and Verizon smartphone users. The results were fascinating.

The survey showed that 54 percent of Verizon customers who owned BlackBerry or Android phones said that they were either “very likely” or “somewhat likely” to switch to the iPhone 4 on the launch day alone. However, another 33 percent said that they were “very unlikely” or “somewhat unlikely” to jump to the new device that will be offered at Verizon on the launch day, but that doesn’t mean those people won’t be looking to switch a little later after the device's debut.

Now, to break this down a little bit more, there were 66 percent of Verizon users who have BlackBerries who said that they would be likely or somewhat likely to purchase a Verizon iPhone 4 on its launch day. When the same question was asked of Verizon Android users, the numbers dropped to 44 percent. In total, there were a whole 24 percent of existing Verizon users that said that they were going to make the switch on launch day and planned on even standing in line in order to pick up a new device.

So what is the big reason for the switch? Well, according to 60 percent of all of the BlackBerry and Android users that were surveyed, the biggest reason seemed to be the difference in interface. It seemed as though those users preferred iPhone 4’s web browsers. Also, media, which includes a phone’s ability to easily play or transfer media, seemed to be causing BlackBerry and Android users to switch as well.

However, despite all these reasons that are causing users to want to switch platforms, there is a huge factor that is causing many users to stick to their current devices…price. More than half of the Verizon customers that were surveyed, 64 percent, claimed that the cost of the device by Apple was the largest reason as to why they would not be making the switch. To add to this, 41 percent—when asked if they were having any second thoughts about switching to Verizon’s iPhone 4 after learning more about it—said that the cost of the device and the data plans associated with the device were still a very large roadblock in preventing them from making up their minds about whether or not to make the switch.

On the other side of things, the survey didn’t show as many interested AT&T users as I expected. Only 26 percent of AT&T customers surveyed said that they were “likely” or “somewhat likely” to buy the Verizon iPhone 4 on the launch day. The survey confirmed that the main reason that AT&T’s iPhone customers want to switch is because they are tired of dealing with dropped calls on AT&T’s network. So what’s holding them back? A whole 45 percent of those surveyed said the cost of the transition was just too much and that it was definitely holding them back from jumping at the opportunity to have an iPhone with Verizon service.

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AT&T Losing iPhone Customers to Verizon

According to data that was released Thursday, January 13 by ChangeWave, approximately 26 percent of current Apple iPhone users that are on AT&T’s plan are planning to switch to Verizon’s iPhone when it is made available in February.

ChangeWave polled 4,050 people a few days before the big announcement that Verizon Wireless made on Tuesday, January 11. They asked those polled that if Verizon were to announce that an iPhone would be made available on their network, would they be switching providers in the next 90 days? Ten percent said that they were planning on switching within 90 days. About 16 percent said that they would be purchasing a Verizon iPhone but not necessarily right away. Among the AT&T users polled, 26 percent said that they would be ditching the AT&T version of the iPhone for the Verizon iPhone.

About 41 percent of those polled, who said that they would be switching from AT&T’s iPhone to Verizon’s, said that they would be making the switch sometime within the next three months. Another 31 percent said that they would be making the switch within the next year.

AT&T users aren’t the only customers that plan on switching service providers though. About 15 percent of T-Mobile users said that they will switch to Verizon for the iPhone, 10 percent of Sprint’s customers also plan on doing this as well, and 4 percent of the existing customers at Verizon said that they will be switching from their current device to the iPhone.

ChangeWave reported that this is the biggest churn rate that has ever been recorded for AT&T. The most prominent reason for AT&T’s customers leaving and choosing the Verizon iPhone is due to poor reception or coverage. A whole 42 percent claimed that this was their reasoning. Another 27 percent said it was because of dropped calls, while 17 percent said their decision was due to the cost.

ChangeWave did report though that AT&T has made improvements in its dropped call history.
"While AT&T continues to struggle in this very important area and trails Verizon by a wide margin, it has made significant advances since our previous survey –improving from its all-time worst 6.0 percent rating last September to 4.7 percent in the current survey," ChangeWave said. "The findings suggest AT&T is now taking concrete steps to try to improve long-standing service issues. But can it do so quickly enough to forestall large-scale defections to Verizon?"

Who knows if consumers are really going to dump AT&T and jump on the Verizon bandwagon, but as data that was released by comScore on Thursday, January 13 suggested, the Verizon iPhone is really a big turning point in the smartphone market.

"The iPhone Verizon deal will no doubt bring even greater competition to the smartphone arena throughout the coming year as Android, iPhone and RIM jockey for the leadership position," Sarah Radwanick, comScore's marketing communications manager, wrote in a blog post.

Radwanick also pointed out Verizon’s smartphone market share that grew from four percent in the last year to 27 percent. Obviously, that’s less than AT&T’s 38 percent market share, but AT&T did drop 7 percent last year due to the abundance of different smartphones that were made available in the last year. Verizon’s numbers really rose mostly because of the strong Android-based devices that the company added to their lineup of smartphones.

In just overall mobile device market share, Verizon has 31 percent, while AT&T has 27 percent.

ComScore also suggested that the iPhone customers that Verizon does end up nabbing will most likely be in customer segments that are attractive to mobile providers. This basically means younger users that come from higher income brackets. Also important to note, iPhone users seem to remain loyal to the iconic Apple smartphone. More than half have subscribed via AT&T for more than three years now, while another 28 percent have had subscriptions for one to three years.

"Although it's too early to tell exactly how consumers will react to the Verizon iPhone announcement, it is fair to say that this deal represents a potentially significant turning point in the ascendance of the smartphone market," Radwanick concluded. "Only time will tell which carriers and platforms will emerge as the market leaders, but it's clear that right now the consumers are winners as they gain yet another option when making their smartphone choice."

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Apple’s Co-Founder is Buying a Verizon iPhone

Lots of people are extremely excited about the announcement that Verizon Wireless made Tuesday, January 11 about featuring the iPhone at their stores and online. Everyone has been waiting for quite some time for Verizon to finally make this announcement. AT&T’s exclusive iPhone contract made things a little difficult, so there were a lot of things that had to be worked around. Fortunately, the wait is now almost over, and you’re not the only one who is excited about the iPhone from Verizon.

When Apple’s co-founder Steve Wozniak was questioned about whether he would be getting the Verizon iPhone at the Computer History Museum in Mountain View on Jan. 11 after the announcement was made by Verizon, he responded, “A VeriPhone? Of Course.”

"I'm definitely going to get one," Wozniak said. "I always have at least one Verizon phone on me at all times, just in case I'm in one of those bad areas. You can find those areas where Verizon doesn't work and AT&T does, but in truth, it's usually the opposite."

"And I also love the mobile hotspot," Wozniak added. "I hope it's the standard $30 a month. I wish it was free like the Palm Pre because that made the Pre a cheaper Mi-Fi. Anyway, so I'm expecting that it's no big new iPhone, not even a new color. It's just going to be on the Verizon network."

The Verizon iPhone has been rumored for years, and the rumors have escalated and really started flying around in the past few months. Well, Verizon has finally officially launched the Verizon iPhone. Verizon says that they will offer a CDMA EVDO version of the iPhone 4 as of February 10. Any exsisting Verizon customers will be able to pre-order the smartphone as early as February 3. The 16GB iPhone will cost customers $199 with a two-year contract, and the 32GB iPhone will cost $299 with a two-year contract.

Wozinak went on saying, “I'm actually playing games in my head about which phones I want to keep. I actually want to keep at least one Android phone."

All this talk about the multiple phones that Wozinak has had me wondering exactly how many phones the guy has.

"I came to the conclusion last night that I'll have three activated AT&T iPhones, so if the battery runs down I have a spare," Wozniak said. "And I'm in Europe a lot of times, so maybe one of them will be Verizon, one of them will be AT&T. So I'll have two AT&T, one AT&T with the international plan, and one Verizon if I need it. Although the tethering's only to a computer. Although maybe I can give one number up and give it to Verizon. And I'll keep the Droid X. And I'll probably give up the Palm Pre because I now have another Mi-Fi."

Wozinak also added, though, that data plans are always an issue.

"I have those grandfathered [data] plans," Wozniak added. "I love those grandfathered plans, but you have to watch them [carriers] like a hawk."

I’m so excited that Verizon has finally worked things out so that they can carry the Apple iPhone. We’ve all been waiting for a very long time, but now we finally have an end date to the wait. I think we can all definitely make it until February. Many people suspected that the “event” that Verizon was holding in New York on Januray 11 had to do with the announcement of a Verizon iPhone, and all of those people were correct. I’m glad the cat is finally out of the bag, and everyone can start making their plans concerning Verizon’s iPhone.

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Verizon's New York Event Concerning the "Latest News"

Verizon has invited reporters to an event in New York on January 11 where the company will share what they have dubbed “the latest news.” Everyone is speculating…could this be an announcement about a Verizon version of the iPhone?

The announcement by Verizon really seemed to confuse many of the people that were at the Consumer Electronics Show in Las Vegas. This is probably because Verizon had already made a ton of announcements at the CES. Most of the announcements concerned the release of its high-speed LTE network. This included the introduction of ten of its LTE devices, including the highly-anticipated HTC Thunderbolt.

It’s possible that the event in New York that Verizon is holding, which is being held at the Frederick P. Rose Hall at the Lincoln Center, is simply a recap of everything that they announced at the CES for the reporters who missed the announcements, but who knows?

Based on reports of conversations with a source that is close to the company, it seems as though the announcement will be about a device.

Many people believe that this announcement simply has to be concerning the rumors about the Verizon version of the iPhone. The rumors have been that the smartphone would be released sometime in 2011.

It appears as though Apple has been working overtime recently. The company has reportedly limited the vacation time of lower-level employees and have also kept on their holiday staff. Other reports (that are complete with drawings) are suggesting that this announcement could be about a next generation iPhone (or a Verizon iPhone) that would be delivered by late February.

Based on the information from a source that is close to Verizon, this announcement could also be about some sort of tablet. Verizon didn’t just focus on phones at the CES. They also discussed hotspots and notebooks, so it is very possible that they want to discuss tablets and how they will be the leading service provider in the tablet industry.

Who knows what Verizon will be announcing? Hopefully, we will be seeing an announcement concerning the iPhone, but for now we’re just going to have to sit around and wait to find out.

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Apple's iPhone is Still Going Strong

Apple’s iPhone is arguably one of the most successful companies of our time, and if you don’t agree with that statement, than you can’t argue with the fact that in the past few years the company has been incredibly successful. The iPhone is one of the factors that add a good bit to Apple’s success story. The iPhone revolutionized the smartphone industry and continues to do so. Many would say that it is the most popular and coveted phone right now. Well, according to DigiTimes, Apple must feel that their success will continue with the phone.

On Monday, December 27, the popular Taiwanese publication DigiTimes claimed that Taiwan-based suppliers could confirm that Apple was planning to increase its global shipment of iPhones for the first quarter of 2011. They seem to be planning on increasing the number of units from 19 million to 20 or 21 million.

It has been reported that Apple’s supplier Foxconn is shipping out between 14 and 15 million WDCMA iPhones, which is up from 13 million. It is also said that Foxconn and Pegatron are going to be shipping out 5 to 6 million CDMA iPhones. It is expected that these devices will be released in Asian Pacific and the United States (on Verizon’s network) in early 2011. A rumor is flying around that China and the U.S. will be the first countries to offer a CDMA compatible iPhone.

There have been rumors about Verizon carrying an iPhone for quite some time now, but the Wall Street Journal seemed to hint in October at the idea that Apple planned to introduce a Verizon version of the iPhone sometime in early 2011.

According to JP Morgan analyst Mark Moskowitz, if Verizon were to launch some type of version of the iPhone, there is a potential for Verizon’s stock to add at least $1.25 in incremental earnings per share annually.

For the fourth quarter, it is expected that global iPhone shipments are going to come in somewhere around 15.5 million. For the entire year, it is predicted that Apple’s total iPhone shipments are going to be close to 47 million.

Ticonderoga Securities analyst Brian White said that his firm was forecasting iPhone sales to reach 13.3 million in the first quarter of 2011, and those numbers do not include what sales would be if Verizon were to release a version of the iPhone.

White wrote that if the number of CDMA iPhones that Digitimes claims to be shipping are correct, "these are big numbers and directly point to the growing popularity of the iPhone around the world in our view and the potential for a healthy upside to our earnings estimates.”

White said that during a trip to China, he noticed that the demand for iPhones definitely seemed to exceed the supplies that the country was receiving, as the exclusive official carrier of the iPhone, China Unicom, still seems to struggle to meet the demand for the iPhone 4. "For example, we indicated that the iPhone 4 was sold out for two months at authorized Apple resellers, Apple stores and China Unicom," he said. "We also mentioned that China Unicom was unable to fulfill approximately one-third of the iPhone 4 orders due to shortages." He said that China is still “in the early stages of catching ‘Apple Fever.’”

Earlier this month, Shaw Wu, one of Kaufman Bros. analysts, predicted that Apple would sell more than 62 million iPhones in 2011. This prediction did include Verizon contributing 2 to 3 million units in the U.S. per quarter or 8 to 12 million annually. Another analyst, Gene Munster, from Piper Jaffray said that Apple could sell another 2.5 additional iPhones next year if they add Verizon Wireless as a service provider.

iPhone sales are doing incredibly well, and it looks as though the sales will only continue to do well. Analysts are predicting that the first quarter of 2011 should be extremely successful. If Verizon can secure a version of the iPhone, I think that sales numbers will skyrocket. I know so many different people who prefer the iPhone to the Droid, but since they like Verizon Wireless service much better than AT&T, they settle with the Droid or some other smartphone offered by Verizon. If Verizon offered the iPhone, Apple would be sure to increase their iPhone sales by a good amount. The Wall Street Journal seems to think that Verizon should have some version of the iPhone early in 2011. I guess we’ll just have to wait and see.

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