Photo: M. Woodruff/Business Insider
Yesterday, before Apple reported earnings, investors and analysts went into a tizzy after Verizon and AT&T reported a bigger than expected drop in sequential sales.This caused at least one analyst to cut his iPhone estimate for the quarter at the last second, and slammed the stock.
Then Apple reported earnings and made everyone look silly with a monster iPhone sales number.
How did everyone get it wrong?
They significantly underestimated how important international sales are for Apple.
Today we learned that Sprint activated 1.5 million iPhones, which means Apple’s domestic activations were 9 million for the quarter.
In total it sold 35.1 million iPhones, which implies 26% of all iPhone sales were in the U.S. A year ago U.S. sales were ~31%.
So, what does it mean? Well, it means that when AT&T and Verizon have worse than expected results, it doesn’t necessarily mean all that much for Apple’s over all iPhone sales.
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