Verizon iPhone sales below expectations, still outpace AT&T

updated 12:35 pm EST, Wed February 16, 2011

Verizon iPhone said below but at 550K plus


Verizon's iPhone 4 launch was slightly disappointing but still outsold AT&T's model, according to leaked sales data. The overall sales are reportedly a "little under" predictions but, during the first five days, consistently outsold AT&T at five different retail stores. The information supplied to BGR showed "very prominent" Apple stores cooling down to between 660 and almost 796 a day a few days later, but AT&T stores at these areas usually sold roughly 100 fewer phones, with the gap sometimes wider.

Only a small number, 14 percent, were coming from an AT&T iPhone, the tips said. However, they confirmed suspicions of strong Android conversions. Despite presumptions by many that Android users would remain loyal, defectors represented the largest single known group of iPhone buyers at 30 percent. BlackBerry users represented 25 percent, and the leftover 31 percent either wouldn't reveal their outgoing smartphone or were upgrading from a basic feature phone.

Verizon's claims of beating its first-day sales record may have been validated, as about 550,000 iPhones were sold during the 17 hours of pre-orders to existing customers. The carrier has never publicly quantified first day sales for a phone, but the tally would be about a third of what Apple managed for the GSM iPhone 4 launch, albeit one shared with several other countries. Android and BlackBerry devices aren't thought to have come close.

The ratio suggests the Verizon release is only having a mild cannibalization effect on AT&T and that many of the early adopters are existing owners unhappy with their current smartphones. Demographics could change quickly as it shifts away from pent-up demand and towards regular business. While the expansion may be below estimates, a continued ability to outsell the AT&T version without simply stealing sales could lead to a much larger market share in the US.


By Electronista Staff

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Previous Comments

  1. wrenchy

    Fresh-Faced Recruit

    Joined: Nov 2009

    0

    Did someone say


    Android was going to be crushed when the Verizon iPhone was released?? Oh yeah.....

    The true numbers will take time to show themselves with all the 2/3 year contracts Verizon & AT&T have been signing. You will have some jumping into the iPhone Camp and some jumping the other way.

    Give it three to four years for a more accurate picture.


  1. woodsmanlw

    Fresh-Faced Recruit

    Joined: Oct 2010

    +10

    Plethora of factors

    As noted by wrenchy its too early to tell. I know people who have heard the rumors of the iPhone 5 and now the smaller iPhone etc so they are holding off on purchase until this summer. Others are waiting for contracts with ATT to expire etc. Give it time and we'll see where things go.


  1. Inbloom

    Fresh-Faced Recruit

    Joined: Feb 2011

    +9

    Hmmm...

    This data is about as bad as a lot of the data that MacNN reports. To compare iPhone 4 launch on AT&T vs Verizon is senseless (in the way they have done it) with out hardcore numbers provided by the carriers. Additionally, one must remember too that the iPhone 4 was very hard to get last summer. People wanted it, but, they just were not available for purchase. Demand had outstripped supply.


  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    -7

    bad news for apple, but not all bad

    Look, just barely outselling AT&T is not good news, AT&T didn't have any pent-up demand for the iPhone.

    This is still good for Apple - I can't tell you how many fan boys couldn't get it out of their head, that the Verizon move was going to change Apple's fortunes. Despite the fact, that Verizon is U.S. only and Apple is losing world wide.

    Despire the fact, that Verizon represents only 30% of the U.S. - the U.S. being just one of dozens of important cellular markets, and certainly not the largest.

    So how could Verzion make such a big difference, regardless of what happened? It couldn't. The math was always there, for anyone to understand.

    But finally we move past this silly Verizon hope. Apple is still in good shape, they can still make a turn around. They will do so by offering more models of phones, competing against Android in prepaid - on even more carriers, at different price points, and sizes of phones.

    They won't go so far as to license iOS, but positive changes are coming - finally.


  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    -6

    conversion rates

    I agree we have only anectdotal info, like a Verzion store with dozens of donuts for hungry people waiting in line - only not to give out those donuts, because a line didn't form of any length.

    But, with that said, that they obviously are disappointed in the numbers - we don't know a lot from these numbers.

    We talk about 30% converting from Android, but when someone buys an Android phone, they didn't always own an Android phone before - they also have a conversion rate.

    There is a conversion rate at AT&T now - you look at Android buys, a certain number came from iOS, a lot more came from Blackberry, and feature phones.

    All of it has to be weighed, to get a complete picture, and nobody is going to give us such a complete picture.

    But we can know a few things, Apple is under competitive pressure from Android. Verizon hasn't changed that. They will respond to the pressure with some amazing products, and I for one, am looking forward to the battle expanding downmarket, across all carriers, countries, price points, and imaginable featuresets....its going to be nice.

    Android phones are already dual core, some have 3d...some have 1gb of ram, some have oversized screens, some are tiny, some will play playstation games....

    Let the battle rage.


  1. facebook_Justin

    Via Facebook

    Joined: Feb 2011

    +4

    comment title

    Has everyone forgotten they sold a million phones in a matter of hours on February 3rd for the preorder launch?


  1. global.philosopher

    Fresh-Faced Recruit

    Joined: Sep 2010

    -2

    Its hard to compete with Android

    It is free and modifiable for the OEMS. They reduce their own R&D costs because Google does the OS layer and all they have to do is focus on the hardware. They reduce their marketing costs (ie. determine what the market wants) becuase they can simply copy BB and Apple handset design. They save costs on materials because they know a lot of people only care about screen size so the rest of the phone can be pieces of s*** and it will still sell.

    I would be concerned if you are a country trying to compete with Asian handset manufacturers who have a free OS to use and are rampant copiers of the companies that spend a lot on R&D, product development and marketing to bring new products to market. Anyone who says Android is a good thing may think differently when mobile phones go the way of TV's. When was the last time a TV was designed and made in the gold old USA.


  1. Tjp

    Fresh-Faced Recruit

    Joined: Jan 2010

    0

    Several issues affect the uptake

    Since many AT&T customers have an average of a year left on their 2 year commitments the conversion is going to be slow. So Verizon is getting a lot of Verizon converters who may get preferential treatment and some new outside folks who have patiently waited for iPhone on Verizon.

    The other major factor is Apple has a regular as ever release schedule and in June/July the newest iCandy will be dangled in front of us, and that just is not that far away to wait.

    As to competition with Apple phones versus Android. Android by its core policy fragments its own market. The development requires not knowing exactly what features or even screen size a phone may support, and some models even change the core appearance so to "fit in" you'd have to adjust to that too. Where Apple shines and has since the 80s is they publish interface guidelines that make sense and that the developers use. From the Desktop ordering of menus and location of common items on the menus (at one point MSFT filemanager/explorer had 3 different locations in different menus even for the creation of a new directory. Sometimes absent an entry instead of disabled as well. Apple software guidelines just preclude that if the author cares) In iOS I have Apps written for iOS 2.0 that still run fine today. Across all the devices including the latest iPad and iPod Touch as well as the iPhone 4 ...

    The Apple corporate focus on stability yields a better environment in my opinion, and does not stifle creativity. I would like Apple to consider a more competitive cut of the funds that reflects a profit but not excessive one. In the beginning 30% made sense, perhaps not any more.

    But all in all Verizon iPhones will be major. Just allow the commitments elsewhere to unwind. If Apple would have gotten Verizon to allow early contract cancellations (like they have twice done with AT&T) then I think uptake would be faster. But that may be in the works for iPhone 5. I qual'ed for my 3G after only 4 months of on the contract for the original model.


  1. Sabon

    Fresh-Faced Recruit

    Joined: Mar 2005

    0

    AT&T to Verizon - not yet, but yes

    My wife and I each have an iPhone 3G. We have not upgraded to a newer iPhone because we don't get at least 40% of incoming calls and it may be as high at 60%. It's hard to keep track of something you don't get. We just have a VERY hard time calling each other (in the Seattle area).

    Are we moving to Verizon? Yes. The question is, are we getting another iPhone …?

    It's complicated. What I can tell you is that we aren't going to be buying a Blackberry or Android phone.

    The question is whether we are going to be buying a smart phone at all.

    WHAT???

    Yes. We may be buying "dumb" phones. Why, when you can have a great iPhone?!

    The iPad. That's why.

    But you can't take calls on an iPad. At least not easily, etc.

    I do not argue with that at all. Not in the last bit. We have no plans, yet, to try to take phone calls on our iPads. The question is whether we need our phones to do anything other than take calls.

    For instance. I have a shoulder bag which I carry my iPad in and my wife used to think she wanted something in between an iPhone and an iPad until she found out that iPads fit in most of her purses.

    If our iPads are super handy and can do everything that an iPhone can do OTHER than take phone calls, AND it can do it better, why not use an iPad for anything other than phone calls.

    If I do upgrade to a Verizon iPhone it will mean that I won't get the next version of the iPad. What would I rather have? The Verizon iPhone and my old iPad or a regular dumb phone and a new iPad. My wife and I are both asking this.

    Our leaning right now? Dumb phones and new iPads.

    Which iPad(s)?

    I'm not sure what my wife is going to do but I'm holding out for the possible Gen 3 version of the iPad that might come out this September. I can hold off until then. Will my wife? I don't know.


  1. facebook_Terrin

    Via Facebook

    Joined: Feb 2011

    -1

    No Surprise

    Like this is a surprise. Verizon isn't offering any incentives to buy an iPhone. When Apple offered a new iPhone, AT&T gave many users an incentive in terms of waiving early terminations fees. So, if you are currently under contract at Verizon, you would have to potential pay close to $400 for a early termination fee on top of $200 for the phone. Further, AT&T isn't going to give incentives for people to jump ship.

    AT&T draws bigger lines because 1) it offers incentives for users wanting to upgrade to a newer iPhone, and 2) most early adopter contracts on AT&T expire around the time a new iPhone comes out.

    Verizon will gain new iPhone users more gradual as contracts expire and from outside sources like Sprint. I doubt Verizon will steal many AT&T customers. Verizon comes with its own set of problems not limited to an inferior iPhone due to its less capable data network.


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