Feeds

AT&T reveals slipping iPhone sales

Fanbois eye Third Coming

Build a business case: developing custom apps

Sales of Apple's iPhone are slowing as potential buyers await the long-rumored refresh of the popular smartphone.

On Wednesday, AT&T released its financial results for the first quarter of 2009. Among the details of the report - which showed revenue to be essentially flat, year-on-year - was the news that iPhone activations have slipped to 1.6 million during the quarter.

That's down from 1.9 million in Q4 2008 and 2.4 million in Q3 2008.

The slippage parallels that of sales of the original iPhone in AT&T's second quarter of 2008, when the company reported "reduced iPhone sales ahead of the early July iPhone 3G launch."

After the iPhone 3G was released on July 11, 2008, however, AT&T crowed that "In the first 12 days following launch, sales of the iPhone 3G were nearly double levels achieved in AT&T's 2007 iPhone launch."

The telecom giant can only hope that they'll experience the same surge when the new iPhone - or iPhones - appear as early as this June.

AT&T has benefited mightily from the iPhone. The company's last three earnings reports have reported that about 40 per cent of iPhones were sold to customers new to AT&T. With the company's landline business slipping, those new wireless subscribers provide a welcome cash infusion.

AT&T apparently sees iPhone sales as key to future profitability, seeing as how the company is reportedly dickering with Apple to extend its exclusive deal until 2011.

Exactly what will lure current iPhone owners to upgrade to a new model - and perhaps pass their current phone down to their kids - remains unclear. Apple, as usual, isn't saying.

But a review of recent Apple patent filings reveals such possible goodies as a self-resizing interface, video mail, biometric security, and more. Of course, merely filing a patent doesn't mean that a product based on it will ever appear - Apple, for example, filed a tablet-Mac patent way back in 2005.

Rumors about the new iPhone have also come hot and heavy, including a 3.2 megapixel camera, video editing, hotter processors, and the oft-discussed iPhone nano.

Whatever Apple has up its sleeve, one thing is certain: AT&T is looking forward to it helping to fatten their bottom line. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.