AT&T's (T) Q1 report isn't good news for Apple, and is nearly as bad for rivals and smartphone chipmakers. Total smartphone sales fell 41% Q/Q to 5.5M. Thus, the 43% Q/Q drop in iPhone sales (worse than Verizon's 24% drop) only led to a modest share decline. Perhaps Walter Piecyk had a point about the impact of AT&T's upgrade policy changes. The big question for Apple now is whether international sales made up for U.S. softness. AAPL -2.1%.