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wowman (82)AT&T Earnings Indicate Outdated iPhone Models Dominating Newer Android Smartphones
Posted by Michael Nace on Thursday Jul 21, 2011 Under Apple News, iPhone 4
As the iPhone 4 is due to be put into mothballs, many smartphone users see it as nothing more than a rusting legacy device compared to the throngs of newer, bolder Android gadgets. And yet, AT&T’s earnings show that the iPhone 4 has catapulted Apple into near smartphone dominance.
The iPhone 4 is well over a year old. In smartphone years, that’s like being a senior citizen, thanks to the break-neck speed that mobile technology advances. Since the release of the iPhone 4 in the summer of 2010, Android has released a horde of new smartphones that, when combined into one fighting force against the iPhone, wields many more newfangled features for the avid smartphone users. From 4G capabilities and 3D screens and cameras, to 8-megapixel cameras and dual touch screens, the Android-based smartphone designs that have followed the iPhone 4 would seem to have sucked up the imagination of mobile technology — so much so that it has led to a feeling that the iPhone 5 can not and will not offer users anything new that Android hasn’t already tried.
And yet, in spite of this perceived Android dominance, the old iPhone 4 has managed to singlehandedly outsell Android, according to a new earnings report from AT&T.
Like Uma Thurman in the Kill Bill series or Stallone in Rambo, one improbable iPhone has managed t0 mow down a multiplicity of competitors, almost in absurd fashion. According to The Street, for AT&T’s second quarter, “In wireless, where the iPhone represented nearly two-thirds of all smartphones sold in the quarter, AT&T added 331,000 postpaid subscribers. Analysts had been looking for about 200,000 new phone subscribers.” In that time, Android has thrown an array of impressive adversaries at Apple, including the Samsung Galaxy S II, which is touted as the natural rival to the iPhone 5.
iPhone 4 Incarnate: Uma Thurman mowing down the minions in Kill Bill, Vol. 1
The success of the iPhone 4 is not only evidenced in AT&T’s numbers; Apple’s profits are resoundingly high, thanks to both the iPhone 4 and iPad 2, as Bloomberg reports: “IPhone sales were buoyed by international demand, particularly in China, where total revenue jumped sixfold to $3.8 billion. After overcoming supply shortages for the iPad 2 following its March debut, Apple saw sales of the tablet soar. The device is now its second-biggest revenue source — behind the iPhone — less than two years after first being introduced.”
Folks, this is amazing: Apple sold over 20 million iPhones in their third quarter of 2011 alone.
So, how has Apple managed to make the iPhone 4 into such a formidable smartphone, even a year after its release? There isn’t just one answer to the question. A big slice of the revenue pie has come from an expansion into the Asia Pac rim, with China, Hong Kong, and Taiwan contributing a great deal to Apple’s bottom line. Apple COO Tim Cook says it best himself: “‘China was very key to our results,’ said Chief Operating Officer Tim Cook, who is handling day-to-day leadership during Jobs’s medical leave. ‘This has been a substantial opportunity for Apple, and I firmly believe that we’re just scratching the surface right now.’” In very practical terms, Apple has sensed the fact that the money has shifted away from the U.S. and its wavering economy, and into Asia, where — while poverty still dominates many countries — a burgeoning middle class and robust mobile subscribership is yearning for the iPhone. Understanding this shift, Cupertino has set its sights on squeezing more profits out of Asia.
But expansion into China still doesn’t explain AT&T’s success with the iPhone 4 in the U.S.
In spite of an increasing number of Americans losing their jobs and contending with food, gas, and goods prices rising 45% or more in the past year, AT&T — and Apple by extension — has managed to peddle plenty of iPhones in 2011. Apple has facilitied these sales by keeping the iPhone 4 front and center in the eyes of American consumers, first by expanding the iPhone’s reach by bringing Verizon on board, then releasing the white iPhone 4, and finally debuting iOS 5 and iCloud, both of which are fully compatible with the iPhone 4. A steady stream of effective marketing and advertising has also helped. As usual, Apple has managed to control the marketing message behind their iPhone 4 perfectly (a feat that cannot be said for the runaway train that is the iPhone 5 rumor mill).
That being said, when one ponders the impressive iPhone 4 sales over its long, meandering lifecycle in the marketplace, one has to wonder why we have even questioned why the iPhone 5 has been long delayed. Why, after all, would Apple rush to replace their best-selling product, especially when they are still selling 20+ million units of it nearly a year after its release. Hence the adage: if it’s ain’t broke, don’t fix it.
By Michael Nace
July 21st, 2011 at 10:43 am
They sold so much more this year because they picked up Verizon…The only thing to keep the train running is to introduce the iphone 5 or numbers should flatten out.
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July 21st, 2011 at 12:55 pm
As an aside, I have a friend (and please understand, as an engineer, I hate anecdotal evidence…) who bought an iPhone 4 late last year, and that has convinced her to buy a Mac and an iPad.
Having been a Windows phone user in the past (I have an Exchange Server), the iPhone has had a unique value in the verticality and simplicity of the market and device, with the App Store, ease of use, 3rd party devices that can be purchased anywhere (like Best Buy and airports) that my AT&T Tilt and the plethora of Windows Mobile phones didn’t.
Yes, the new Google phones have dual screens and other ‘gee whiz’ stuff, but one thing that needs to be addressed that Apple did: What if I need to get something for it? Google has their app store, which is good (I don’t know if MS has done that with Windows phones…), but the hardware part is the combination strength/weakness of the other makers. If you need a protector fro your phone, or a headset, or whatever, if there is a proprietary, or unique item, unless you get the most popular phone, you’re out in the mail order wasteland, or the supplier (AT&T, Verizon, whatever).
I guess it’s just because the iPhone is the whole package, and that’s why it is successful.
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July 21st, 2011 at 1:22 pm
I cant wait for more news on the specks and great stuff the phone has to offer. I was hoping that the Iphone 5 wouldnt be to popular so it would be easier to get here in Canada!
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July 21st, 2011 at 1:39 pm
I think a big part of the iPhone’s success is due to the original iPod’s. The iPod is really what helped bring apple back to life in the first place. iTunes has become the main online music store and even people who don’t have an iPod or iPhone seem to have iTunes for one reason or another. Also most cars have iPod connection. I’ve yet to see a car with Galaxy S or Zune connection.
However, all the success of the iPhone 4 is no excuse to delay the iPhone 5 into 2012 or to release a “minor” upgrade. A lot of people will agree that the iPhone has the better OS but in terms of hardware the android phones are far ahead of the iPhone. Release an iPhone 5 that has an 8mp camera, bigger screen, slim design, and a new innovative hardware feature and you’ll see iPhone sales skyrocket.
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July 21st, 2011 at 2:40 pm
[...] the original post here: AT&T Earnings Indicate Outdated iPhone Models Dominating Newer Android Smartphones Filed Under iphone 4, Iphone 5 Tagged With asia, chief-operating, imagination, iphone, iphone 4, [...]
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July 21st, 2011 at 4:47 pm
The succsess is from advertizing!!!! So many APPS for stores , shopping malls, Music, The new AV Recevers come with the capable Iphone features AIR PLAY, Free cables for your Iphone to plug into the recever. Seems every were I look “Get the App for this store” It seems alot of stuff is geared and made for apple Iphones to work with. Thats the Canadian opinion!
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July 21st, 2011 at 5:58 pm
as someone who tried both android and iphone,I’d say it’s mainly about the fact that iphone doesn’t crash ot force closes all the time.it’s reliable,very reliable.after 2 year suffering on android I’d rather take 3gs over any of new androids.also,let’s not forget our vanity and wanting to feel special and cool.Apple makes you feel you own something special.which of course ain’t true but we always fall for elitist bait
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July 21st, 2011 at 7:35 pm
Funny how other outlets have put a completely different spin on this news. We at iphone5newsblog are like “see? The iPhone represents 60% of smartphones sales for AT&T!” whereas cnet says, “See? Android has already stolen 40% of the iPhone’s market! AT&T is no longer just an iPhone carrier!” The difference is, of course, that we don’t pretend to be unbiased. cnet, on the other hand, has just shown that they are. No, they couldn’t just say, “60% percent of AT&T smartphone contracts are iPhone and 40% are Android,” they HAD to pat the underdog on the back for taking on the big, bad silverback.
One thing cnet mentioned that I found interesting is that their advertising is shifting from being heavily focused towards the iPhone toward being more focused toward Androids. That’s right, AT&T is more interested in promoting the less popular platform over the one that brings in the most revenue and profits.
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July 21st, 2011 at 7:36 pm
*cnet has shown that they are NOT unbiased, like they pretend to be, is what I meant.
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July 21st, 2011 at 7:38 pm
And by their advertising, I mean AT&T’s advertising, not cnet’s. Jesus, that “edit” button. If only we had one
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July 21st, 2011 at 8:45 pm
Good stuff, Andres. And for the record: I’m working on that “edit” button. I can’t do it myself — need to get my tech to do it. But standby: hopefully by the beginning of next week.
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July 21st, 2011 at 9:10 pm
Andres: You are a source of happiness. I got a good chuckle out of your last two posts. I had a great vision of you screaming at the keyboard. I just hope you didn’t throw it against the wall.
As for the success of Apple, I personally feel that it has all to do with quality. You may spend a little more for a quality product but you’ll keep it and be happy with it for a long time.
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July 21st, 2011 at 10:45 pm
Hahah, eh, I learned the hard way not to do that. I just have this habit of typing down whatever thoughts I have, so I babble on and on but do not proofread anything I write. Then when I submit my comment and read it to see if it makes sense. Most of the time there’s something that doesn’t
And yeah, it absolutely is all about quality. Not necessarily “you’ll be sixty five and it’ll still work” quality, but “it’s so well designed it makes everything else feel cheap in comparison” quality. That’s what Apple is all about.
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July 22nd, 2011 at 10:27 am
@JohnT: A phrase I tell my kids:
A poor man pays twice.
They usually learn the hard way, though, but it’s nice to know that the older they get, the smarter I was.
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July 22nd, 2011 at 11:34 am
I actually think what made Apple so successful, in terms of their somewhat recent resurgeance in the tech world, is their ability to take something that’s already been done and restylize it to proportions that are both visually & aesthetically tantilizing and seemlessly flawless in terms of operation. Take the iPod for example (1st gen), it wasn’t the first mobile music player in it’s class. In fact, several companies like Sony and even Nike had mobile media players far before the iPod came out but when their original model was released, it blew the competition away as far as capacity, style and versatility. Then they introduced mobile media players in their lineup of iPod Touches that really took things to another level. Apple doesn’t have competition, they make competition. When they see an idea that has potential, they formulate a product that is above & beyond the call of duty. At that time, the first iPod was a little overkill but when the Touch came out, it was more than a music lover’s wet dream and from then on, they resolidified their place in the tech world. Fast forward to the iPhone intro; yet again, it wasn’t the first phone of it’s class to model similar features but what the iPhone did is take basic principles and add the Apple touch to make it truly futuristic and innovative. That’s where today’s competition in the mobile phone world came from, nipping at the coattails of the original iPhone. Now all Apple has to do is take an original product and continuously build off of it to make it better and watch what the mobile innovators over at competing companies do to take aim at making a good or basic idea better or more innovating and by this, helping Apple generate more ideas themselves. Marketing and market-knowledge are some of Apple’s strongsuits, yes, but in my opinion, what makes a company great is its ability to forecast trends, capitolize on modern product and innovate things that will change the forseeable future. Apple does this flawless and by today’s standards, even with all of the bells & whistles we rarely use, their products are never overkill; they could be killed a lot more!
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July 22nd, 2011 at 1:40 pm
Are we going to get a Friday Post ???? Oh I Hope so….with info on the styling and features and release date of new phone …….OH YA Bring it on !!!!
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July 23rd, 2011 at 8:13 am
Apple is doing lot of efforts to stop android overtaking them.Also their sales are going to boost after launch of the Cheaper iPhone
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December 20th, 2011 at 8:19 pm
[...] ［爆発的に増える：image］ [...]
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