When Verizon reported earnings last week Apple investors zeroed in on one thing: iPhone activations fell by 24% on a quarter over quarter basis.We have another data point from a U.S. carrier, and it’s only going to make investors even more worried. AT&T activated 4.3 million iPhones, which is a 43% sequential decline.
That means between AT&T and Verizon, iPhone activations fell 37% on a quarter over quarter basis.
If this trend holds across the board, then Apple will miss the Street’s iPhone estimates. If Apple misses on iPhone sales the stock will be slaughtered.
AT&T and Verizon are coming off big holiday sales periods, so a fall was to be expected. However, it seems it be worse than expected as the stock is getting crushed this morning.
Analysts believe International sales, particularly in China, will be strong enough to offset any sequential sales dip in the U.S. We’ll find out tonight when Apple reports earnings. Tune in here for live coverage starting at 4 PM eastern.
This AT&T news sounds bad, but here’s the silver lining: AT&T sold 5.5 million smartphones overall, which means the iPhone was an astounding 78% of sales. At Verizon, the iPhone was more than half of all sales.
This is more evidence that Apple is mounting a big comeback against the market share lead Android racked up. It’s also evidence that when given a choice, consumers pick iOS over Android.
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