Apple appears to be reaping the benefits as more and more feature phone users trade up to smartphones. The company carved out a huge chunk of AT&T and Verizon smartphone sales for the second quarter of the year, according to financial results released by both companies.
AT&T announced on Tuesday that 62 percent of its total subscribers are using smartphones. The company sold 5.1 million smartphones in the second quarter, representing 77 percent of its postpaid device sales. While iPhone sales are down from the last quarter—a typical slowdown that comes as the prospect for a next-generation model approaches—AT&T sold 3.7 million iPhones, or 73 percent of its smartphones sales in the last three months.
This follows Verizon's announcement that 50 percent of its subscriber base is now using a smartphone, and the company sold 5.9 million total in the second quarter. As with AT&T, iPhone sales declined sequentially, but the 2.7 million iPhones that Verizon sold represent 45 percent of its smartphone sales.