AT&T still reliant on iPhone for growth, Android plays small role in Q1 2012 results.

April 24, 2012 | by Andrew Kameka


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The iPhone Gravy Train is still firmly on the tracks in AT&T Land. AT&T announced its Q1 2012 earnings today, touting new sales totals powered largely by iPhone activations and little else.

AT&T activated 5.5 million smartphones in Q1 2012, 4.3 million of which were iPhones. That left only 1.2 million sales split between all Android, BlackBerry, and Windows Phone 7 devices. That’s a decline from the 1.9 million non-iPhone sales during the same period last year, and continues the downward trend started in 2011. Sales of non-iPhones at AT&T were 2 million in Q2 2011, 2.1 million in Q3 2011, and 1.8 million in Q4 2011.

So what’s keeping Android phones from being more competitive on the nation’s most popular carrier? That’s hard to say, but maybe we’ll get some clues during the AT&T earnings call set to begin at the top of the hour. In the past, AT&T has shown that Android sales have consistently gone up, but the pace of growth has been a small blip on AT&T.

Other interesting notes from AT&T’s Q1 earnings report include:

  • AT&T had a net addition of 726,000 customers. It remains the nation’s most popular carrier with 103.9 million subscribers (Verizon is second with 93 million).
  • 59.3 percent of AT&T customers have smartphones, up from 46.2 percent this same time last year. Most customs (88 percent) are on a FamilyTalk or business plan.
  • AT&T sold 240,000 tablets last quarter.
  • 61 percent of AT&T subscribers are now on tiered data plans. You may recall that AT&T started cracking down on heavy data users on throttling anyone who went over 2 GB (soon raised to 3 GB). Customers with grandfathered data plans are being pushed to convert to tiered data or risk constant throttling.