The iPhone Is Still a Strong Seller for AT&T and Verizon

Analysts are getting nervous about Apple after looking at the financial results of AT&T and Verizon. Their iPhone sales results were below some expectations. But where’s the sign that Apple’s iPhone is losing momentum?

The popular smartphone remains a strong seller for both AT&T and Verizon, the nation’s two big carriers, even at a time when the number of new contract customers is slowing to a crawl. AT&T said it set a new first-quarter record with 5.5 million smartphones sales, a slight increase from the year-ago quarter. Verizon, meanwhile, said it sold 6.3 million smartphones, 3.2 million of which were iPhones, over the quarter. For AT&T and Verizon, the iPhone’s success is somewhat of a double-edged sword. They pay hefty subsidies of $400 per iPhone, according to analysts’ estimates. But the iPhone, with its rich Web browser and access to hundreds of thousands of apps, is also a gateway drug to some of the heaviest data use: the new cash cow in wireless.