AT&T Poised to Shatter Quarterly Smartphone Sales Record on iPhone 4S Surge

att logoAT&T today announced that it sold approximately 6 million smartphones during the first two months of the fourth quarter, already approaching the company's record for quarterly sales of 6.1 million units set in the third quarter of last year. In particular, AT&T credits the strong performance of the iPhone 4S for the sales boost.

AT&T’s strong smartphone sales in part reflect a higher number of handset upgrades from customers who were waiting for the launch of a new iPhone. AT&T previously announced that it activated more than 1 million iPhone 4S’ in the first five days the device was available. AT&T said iPhone 4S sales remain strong.

AT&T's press release was accompanied by a regulatory filing noting that the strong sales will result in a negative impact on near-term earnings as the carrier absorbs the large subsidies it pays out for each handset. But beyond the short-term hit to earnings, the company expects those sales to result in improved performance over the long-term as it recoups those subsidies over the two-year terms of customers' service contracts.

The higher number of upgrades indicates that customers have continued to stay with AT&T in record numbers even in a very competitive environment, with more carriers than ever selling the iPhone. Also consistent with AT&T’s earlier guidance, these record smartphone sales are expected to have a near-term negative impact on margins and therefore earnings. However, AT&T expects that these postpaid customers over time will benefit the Company as, historically, postpaid customers produce stable revenue, reflecting their contract term, and higher average revenue per subscriber, including stronger data usage, than other customer categories.

In addition to the iPhone 4S, AT&T also offers the new 8 GB iPhone 4 and is the exclusive U.S. carrier for the iPhone 3GS. Those lower-end devices have also proven popular with customers, continuing to drive sales growth for the carrier.

Related Forum: iPhone

Popular Stories

Apple Shopping Event 2025

Apple Announces 2025 Black Friday Event, Here's What You Can Get

Thursday November 20, 2025 6:28 am PST by
Apple's annual four-day Black Friday through Cyber Monday shopping event is returning on Friday, November 28 through Monday, December 1 in many countries, including the United States, Canada, Australia, New Zealand, France, Germany, Italy, Spain, the United Kingdom, Belgium, the Netherlands, Sweden, Thailand, and others. During the shopping event, customers can get an Apple gift card with...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Wednesday November 19, 2025 4:00 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
iOS 26

iOS 26.2 Adds These New Features to Your iPhone

Thursday November 20, 2025 10:50 am PST by
iOS 26.2 is currently in beta testing. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics for Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date. Keep reading...
hikawa phone grip stand apple%402x

Apple Launches Second Limited-Edition iPhone Accessory in a Month

Friday November 21, 2025 3:53 am PST by
Apple has begun selling the Hikawa Phone Grip and Stand, a new limited-edition iPhone accessory designed with accessibility in mind. Designed by LA-based Bailey Hikawa to celebrate the 40th anniversary of accessibility at Apple, the grip uses magnets to securely snap onto any iPhone with MagSafe. Apple says it can be removed with ease, and doubles as a stand with two different viewing...
ipad mini 7 feature red and blue

iPad Mini 8: Four Major New Features to Expect

Wednesday November 19, 2025 7:50 am PST by
Apple's eighth-generation iPad mini is highly likely to arrive next year, offering a significant refresh of the device with at least four major new features. OLED Display The next-generation version of the iPad mini could feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple Watch in 2015, ...
applecare apple care banner

Apple Brings New AppleCare+ Options to India

Tuesday November 18, 2025 8:42 am PST by
Apple today announced an expansion of AppleCare+ coverage in India, with new options for monthly and annual plans, and the addition of Theft and Loss for iPhone for the first time. Options for monthly and annual AppleCare+ plans in India provide more choice and flexibility, allowing users to keep coverage for as long as they require. Apple's vice president of Worldwide iPhone Product...
watchos 26 workout app

Apple Watch Users Claim Workout App Is Now Worse in Every Way

Thursday November 20, 2025 7:01 am PST by
Apple Watch owners have been voicing their frustration online over changes to the Workout app that Apple introduced in watchOS 26, with many finding the redesigned interface makes starting exercises difficult and exasperating. When Apple launched watchOS 26 in September, the Workout app went from large, easily tapped workout tiles to a scrolling, corner-button interface. Instead of tapping a ...
apple wallet drivers license feature iPhone 15 pro

Two More U.S. States Commit to Offering iPhone Driver's Licenses in Apple Wallet App

Thursday November 20, 2025 8:21 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. Earlier this week, Illinois became the 13th state in the U.S. to offer the feature. Subsequently, we shared a list of additional states that are committed...
android iphone airdrop quickshare

iPhone Users Can Now AirDrop Files to Android Devices

Thursday November 20, 2025 9:47 am PST by
Google today announced a new cross-platform feature that allows for file sharing between iPhone and Android users. With AirDrop on the iPhone and QuickShare on Pixel 10 devices, there is a new file transfer function available. The file sharing option works on Apple devices that include iPhone, iPad, and Mac, along with the Pixel 10, Pixel 10 Pro, Pixel 10 Pro XL, and Pixel 10 Fold....
iOS 26

Everything New in iOS 26.2 Beta 3

Monday November 17, 2025 3:20 pm PST by
Apple provided developers with the third beta of an upcoming iOS 26.2 update, and there are still new features that are being added with each beta that we get. We've rounded up all of the changes that Apple made in beta 3. AirDrop Apple added new AirDrop functionality, providing a way for two people to share files temporarily without having to add one another as contacts. iOS 26.2...

Top Rated Comments

dvdlovr24 Avatar
182 months ago
LOL at American mobile phone contracts lining AT&T's pockets.

$2000 / 2 years

:rolleyes:

I've never understood this argument. You have to pay a carrier to get service. So I don't see the problem with staying for two years and not having to pay the full price of the phone. It's not like I get a cheaper monthly rate if I pay full price for my phone.
Score: 8 Votes (Like | Disagree)
Diode Avatar
182 months ago
All the carriers in the US are pretty similar. The hatred towards ATT specifically makes no sense. If you want to be an equal opportunity disgruntled customer that's another matter.

Yea sorry if I wasn't clear - I meant cell service in general in the US. They have little incentive to pass savings on to the consumer because there is virtually no competition with how fragmented the networks are.

Thus we pay high fees for crappy service.
Score: 7 Votes (Like | Disagree)
dgree03 Avatar
182 months ago
but no one balks when Apple makes record profits/has premium pricing for their hardware? Ok....

That would require rational. We both know that is scarce around this part of the internetz
Score: 6 Votes (Like | Disagree)
Risasi Avatar
182 months ago
I haven't noticed any worse service, not that it's generally as good as Verizon. But honestly, all cell companies are a pain in the butt...
Score: 6 Votes (Like | Disagree)
dgree03 Avatar
182 months ago
While I would love to pay less - with a FAN discount I am paying about $70 a month. That's 1680 for two years. Now factor that I paid 199 for my phone and I'm guessing that ATT's "price" is - let's say 600. So that's 1280 they are getting for "service" - appx 54 a month. For unlimited data/450 minutes I see that as "ok"

But that's my scenario.

I dont understand why people always talk about cost by adding the total amount over 2 years?

It seems that would not matter because ANY SMARTPHONE you buy will be subject to the same cost. Carriers don't discount service for buying a phone full price. So smart people should always buy on contract unless(like me) they like switching phone services and phones frequently. To me cost over 2 years is irrelevant, if I want a smartphone I gotta pay. Its that simple.
Score: 5 Votes (Like | Disagree)
samcraig Avatar
182 months ago
The difference being - cell service in the US is a borderline government supported monopoly.

People pay the premium because they favor the computer over one from Dell, IBM, Alien the list goes on.

People pay this to AT&T because they have little other choices.

You can't start a new GSM carrier in the US because the FCC won't allow it. You can easily start a new computer company. The threat of entry is why Apple continues to innovate (and drive huge profits) while AT&T drags it's feet and can still pull record profits.


All the carriers in the US are pretty similar. The hatred towards ATT specifically makes no sense. If you want to be an equal opportunity disgruntled customer that's another matter.
Score: 4 Votes (Like | Disagree)