At just past the halfway point of the fourth quarter, and the first quarter of iPhone sales across three of the nation’s top four carriers, retail channel checks conducted by Wells Fargo Securities indicate the device will have a significant impact on the fortunes of carriers.
The firm found that those carriers currently offering the iPhone are showing strong growth on the postpaid side, while the only carrier not currently offering the device — T-Mobile USA — is finding more success in the prepaid space.
From top to bottom:
–The firm notes that Verizon Wireless was seeing “consistent solid take rate” for smartphones, with the iPhone leading in consumer demand at the nation’s largest carrier. Wells Fargo said it expects the carrier to maintain its position in leading the market in gross and net customer additions for the quarter, with data devices providing a solid foundation for that growth. Interestingly, the channel checks indicated an ample supply of LTE devices in stock.
–AT&T Mobility, which was the original home for the iPhone, showed consistent sales of the device, though it was noted that most were from customer upgrades than new customers coming to the carrier. Wells Fargo said it expects more than 80% of iPhone sales at AT&T Mobility are coming from upgrades, and that some higher-data use customers appear to be defecting to Sprint Nextel, which is the only nationwide iPhone provider offering unlimited data to new customers. Wells Fargo did note that it expects the carrier to post record iPhone sales for the quarter, which would follow up on the carrier’s announcement that it sold 1 million devices during its opening weekend.
–Speaking of Sprint Nextel, Wells Fargo found that the nation’s No. 3 carrier was seeing strong iPhone uptake, bolstered by having the shortest turnaround time in getting devices into the hands of customers. The carrier was seeing its greatest influx from AT&T Mobility and T-Mobile USA customers, and that the carrier could exceed forecasts of up to 340,000 net additions for the quarter. Wells Fargo noted that the value proposition offered by Sprint Nextel’s rate plans has garnered attention with users, which it indicated were 38% less expensive than Verizon Wireless and 31% cheaper than AT&T Mobility.
–T-Mobile USA continues as the only nationwide operator with the iPhone, a fact that appears to be hampering its postpaid customer growth. Wells Fargo also noted that T-Mobile USA’s limited presence in some big-box retailers could hurt the carrier’s Q4 growth potential. This was highlighted by RadioShack’s recent dropping of T-Mobile USA from its retail stores in favor of Verizon Wirless and Wells Fargo’s findings that employees at some big-box retailers were not actively pushing T-Mobile USA services. The carrier continued to show strong growth on the prepaid side, driven by demand of its branded prepaid offerings.
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