AT&T Smartphone Subscriptions Move Up

AT&T’s smartphone penetration has gone above 60 percent of its contract customer base, but they keep signing up new subscribers at a bewildered pace.

For AT&T, in the second quarter, about 77 percent of all new postpaid device sales were for smartphones. AT&T has accrued only 320,000 new net contract subscribers in a three month period.  Most of those gains were replacements for retreating customers as well as for existing customers who were upgrading.

AT&T has activated 5.1 bmillion iPhones, Android devices, BlackBerrys and Windows Phone handsets. In comparison, Verizon Wireless sold 5.9 million smartphones in the second quarter.

For iPhone users, AT&T continues to remain as the top favorite. AT&T has activated 3.7 million of the Apple devices between April and June, beating Verizon’s 2.7 million iPhone sales.

That is nowhere near AT&T’s record of 7.6 million activations from the last year’s fourth quarter, when the iPhone 4S had just been released.

Subscribers have started anticipating the arrival of the new iPhone this fall and AT&T has said that 22 percent of its new iPhone activations were customers coming from other carriers.

AT&T’s total subscriber gain was 1.3 million, making a grand total of 105.2 million. It has the strongest growth in the reseller category, which is a good indication that AT&T’s new open attitude towards mobile virtual network operators is paying dividends.

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