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Verizon's 4.2M Q4 iPhone activations were more than half of its smartphones

post #1 of 32
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Verizon on Tuesday revealed its quarterly earnings for the fourth quarter of 2011, in which it sold 7.7 million smartphones, 4.2 million of which were iPhones.

Apple's strong performance in the holiday quarter was downplayed by Verizon, which preferred instead to focus on its high-speed 4G long-term evolution network. Verizon's official press release, "Investor Quarterly" publication and earnings results presentation slides made no mention of Apple or the iPhone.

The carrier had already revealed earlier this month that it sold 4.2 million iPhones in the December quarter. Verizon's chief financial officer, Fran Shammo, attempted to deflect concern from some analysts on Tuesday that the high subsidy cost of the iPhone dragged down the carrier's wireless profits, according to CNN Money.

Shammo said that high costs associated with subsidizing the iPhone are simply the price of doing business with Apple. And those costs gave Verizon 55 percent of its smartphone sales for the quarter, as most customers chose Apple's 3G iPhone versus the carrier's selection of 4G LTE phones.

Verizon officials said they are happy with the 2.3 million 4G LTE devices that were activated in the last quarter. The company touted that it has made "significant advancement" in deploying its 4G LTE network, and is well ahead of the competition in that respect.

"Verizon finished 2011 very strong, both in terms of revenue growth and by delivering an 18.2 percent total return to our shareholders for the full year, and the company has great momentum for 2012," said Lowell McAdam, Verizon chairman, president and chief executive officer.

"Verizon Wireless produced particularly strong growth in the fourth quarter. While that diluted wireless margins in the short term, it is good news for revenue and margin growth over the long term, particularly given our leadership in the rapidly developing 4G LTE ecosystem."

Verizon posted 7.7 percent year-over-year quarterly revenue growth in the fourth quarter of 2011, which was a record for the company. Its wireless business had $18.3 billion in total revenues for the quarter, up 13 percent from the same holiday period in 2010.




While the carrier's press materials and news releases didn't mention Apple, its quarterly bulletin publication did lead off with an illustration of a 3G-connected iPad touting its record revenue growth in the fourth quarter.

Verizon is the largest wireless carrier in the U.S., and its chief rival is second-place AT&T, which announced in December that Apple's launch of the iPhone 4S has propelled total smartphone sales to 6 million in the first two months of the quarter. That number was just shy of its quarterly record of 6.1 million smartphone sales with a full month still left to go in the holiday quarter.

iPhone sales are greater at AT&T, where Apple's smartphone remained exclusive in the U.S. until February of last year when the iPhone 4 came to Verizon. And last fall, the iPhone also came to Sprint, the third-largest carrier in the U.S., as well as smaller regional carriers like C Spire Wireless.

Apple will report its total iPhone sales for the holiday quarter this afternoon, when it releases its own quarterly earnings after the markets close at 4 p.m. Eastern, 1 p.m. Pacific. AppleInsider will have full live coverage.
post #2 of 32
Quote:
…most customers chose Apple's 3G iPhone versus the carrier's selection of 4G LTE phones.

"Apple is doomed. They need to license Android before everyone just stops buying iPhones altogether. No one will be buying iPhones in two years."

Time to play Guess That Quote!

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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post #3 of 32
I am having a hard time understanding how anyone can be so concerned about the "high subsidy cost" when at the same time the have achieved records for year over year growth and posted double digit increases in revenue etc.

On the other hand I suppose that for many people if they cannot base their world view on a single metric then it is just to confusing for them to handle. Thinking back the MHz wars, and MegaPixels, and screen size etc.

I say ANY future comments or projections etc that anyone makes based on ANY single data point should just be immediately stricken from the public record. Kinda the way the Olympics does not use the highest and lowest judges' scores.
post #4 of 32
These aren't really surprising numbers given the launch of the 4S, pent up Verizon holdouts from the 4, and holiday period. I'm more curious to see how the current quarter trend fairs.
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post #5 of 32
Quote:
Originally Posted by thataveragejoe View Post

These aren't really surprising numbers given the launch of the 4S, pent up Verizon holdouts from the 4, and holiday period. I'm more curious to see how the current quarter trend fairs.

It surprised me. I didn't anticipate there was that much pent-up demand for the next iPhone. Pretty darn impressive I think.
melior diabolus quem scies
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melior diabolus quem scies
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post #6 of 32
Quote:
Originally Posted by thataveragejoe View Post

These aren't really surprising numbers given the launch of the 4S, pent up Verizon holdouts from the 4, and holiday period. I'm more curious to see how the current quarter trend fairs.

On the other hand, we will see what percentage of sales is the iPhone when someone can walk into the store and actually get it. If you are a reseller, you push the non-iPhones when you have limited iPhone supply. A delayed sale is a lost sale to you.
post #7 of 32
Quote:
Originally Posted by Tallest Skil View Post

"Apple is doomed. They need to license Android before everyone just stops buying iPhones altogether. No one will be buying iPhones in two years."

Time to play Guess That Quote!

Nice sl@pppy channel TS!

Now notice that the percussive protagonist is curiously silent, eshewing ardent Android adulation in the face of actual Apple ascendancy.
If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
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If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
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post #8 of 32
I read elsewhere that Verizon also reported adding 1.5M subscribers. This would mean at least 2.7M subscribers switched either from a feature-phone, an Android, BB or Windows Phone to iPhone. Impressive. I have a gut feeling that RIM was the big loser here.
post #9 of 32
Quote:
Originally Posted by stelligent View Post

I read elsewhere that Verizon also reported adding 1.5M subscribers. This would mean at least 2.7M subscribers switched either from a feature-phone, an Android, BB or Windows Phone to iPhone. Impressive. I have a gut feeling that RIM was the big loser here.

It appears that those were not the Droids customer were looking for after all.
post #10 of 32
Quote:
Originally Posted by thataveragejoe View Post

These aren't really surprising numbers given the launch of the 4S, pent up Verizon holdouts from the 4, and holiday period. I'm more curious to see how the current quarter trend fairs.

I agree. I expected big numbers for the iPhone during the holiday quarter for all the reasons you list. It's the current quarter that interests me as well.
na na na na na...
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na na na na na...
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post #11 of 32
Apple has them all right where they want them!

Now when is Apple going to pull the wraps off their secret plans for global, ubiquitous Super Duper Wi-Fi?

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #12 of 32
Quote:
Originally Posted by thataveragejoe View Post

These aren't really surprising numbers given the launch of the 4S, pent up Verizon holdouts from the 4, and holiday period. I'm more curious to see how the current quarter trend fairs.

Quote:
Originally Posted by Gatorguy View Post

It surprised me. I didn't anticipate there was that much pent-up demand for the next iPhone. Pretty darn impressive I think.

I seem to remember the 8+ month old iPhone 4 set new daily records, and people were like "Not surprising, but will be interested in seeing when a new iPhone is launched" -- This is the litmus test for iPhones. By moving the launch of new models to Q4, Apple is essentially guaranteeing that the holiday sales cycle will be theirs.

Nearly 55% of the smartphones Verizon sold were of 2 models (Yes, I know there are 6 skus total). How many iPhone Verizon commercials were there? Compare that to being inundated with 4G/LTE phone commercials, and "double your data" promotion on 4G devices, I'd say it is EXTREMELY impressive. New smartphone users were buying the iPhone more often than, and near 2 to 1 mind you, 4G/LTE Droids (as I don't think there were any BB or WP7 4G Verizon phones out there, though I could be wrong) -- WITH HALF THE DATA CAP for the same price.

So double data (real or perceived benefit, in theory, could double costs to VZW, though highly unlikely) and more costs for marketing those phones, to only achieve a bit better than half the sales of the iPhone? How is a higher, one time subsidy, a bigger problem?

Quote:
Originally Posted by lilgto64 View Post

It appears that those were not the Droids customer were looking for after all.

Love it.
post #13 of 32
Quote:
Originally Posted by island hermit View Post

I agree. I expected big numbers for the iPhone during the holiday quarter for all the reasons you list. It's the current quarter that interests me as well.

While Android fanboys like to spout 'the 4s is just a 4', the fact is the 4s is faster, the camera is really great, Siri is fun and useful as long as you figure out what it's generally looking for for format/questions (and still way better than any other voice recognition), and it's all-around a great phone. Apparently I'm not the only one who thinks so.

Yep, very interested to see the overall numbers too.
post #14 of 32
So despite Verizon's decent 4G network coverage in 2011... and all those 4G Android phones with the huge displays... and the iPhone "not being any different except for the gimmick Siri"... Apple was still able to sell more units than all other smartphone vendors combined.

Of course, the iPhone only came out in October, but I name several phones that also only came in last few months on Verizon.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #15 of 32
Quote:
Originally Posted by mrstep View Post

While Android fanboys like to spout 'the 4s is just a 4', the fact is the 4s is faster, the camera is really great, Siri is fun and useful as long as you figure out what it's generally looking for for format/questions (and still way better than any other voice recognition), and it's all-around a great phone. Apparently I'm not the only one who thinks so.

Forget Siri, which I find completely unhelpful. What's MOST impressive about the iPhone 4S is something that is based on Siri: SYSTEMWIDE VOICE DICTATION (in every single app). Now THAT is truly awesome.
post #16 of 32
Quote:
Originally Posted by scotty321 View Post

Forget Siri, which I find completely unhelpful. What's MOST impressive about the iPhone 4S is something that is based on Siri: SYSTEMWIDE VOICE DICTATION (in every single app). Now THAT is truly awesome.

And when we actually get that in an iPhone, it will be even more awesome.

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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post #17 of 32
Quote:
Originally Posted by SolipsismX View Post

So despite Verizon's decent 4G network coverage in 2011... and all those 4G Android phones with the huge displays... and the iPhone "not being any different except for the gimmick Siri"... Apple was still able to sell more units than all other smartphone vendors combined.

Of course, the iPhone only came out in October, but I name several phones that also only came in last few months on Verizon.

Many people just don't want to make the trade-off of battery life for LTE just yet, especially since coverage is good but not ubiquitous yet. In many cases this sort of worked in the iPhone's favor, as your best non LTE option, platform agnostic. Otherwise you're stuck with a rottenberry (which aren't even on the floor anymore) or Incredible 2. You do bring up a fair point on timing, the Rezound and Galaxy Nexus didn't launch till mid December. I'd love to see the breakouts as I'm sure the $99 i4 is far more appeasing than a 299 phone anyway. With LTE phones coming down to 199, and the Spectrum, D4, and Razor Maxx all launching now it'll be interesting to see how things settle down in Q1.

EDIT: Verizon sold 15 million Android phones and 10.8 million iPhones over the course of 2011.
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post #18 of 32
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Originally Posted by Tallest Skil View Post

And when we actually get that in an iPhone, it will be even more awesome.

Voice dictation is already there, a new button on the keyboard similar to Android and WP7 phones. Apple "should" add the same feature across iOS 5 devices, leaving Siri's other functionality the differentiator. But soon enough, iPhone 4S will be the top model.

Hard to believe, but Apple sold 72 million iPhone's in fiscal 2011 (ending in Sept), nearly as many as all the iPhones sold 2007-2010 (73.7 million). That's not counting the holiday "Q1 2012" quarter.
post #19 of 32
Quote:
Originally Posted by thataveragejoe View Post

Many people just don't want to make the trade-off of battery life for LTE just yet, especially since coverage is good but not ubiquitous yet. In many cases this sort of worked in the iPhone's favor, as your best non LTE option, platform agnostic. Otherwise you're stuck with a rottenberry (which aren't even on the floor anymore) or Incredible 2. You do bring up a fair point on timing, the Rezound and Galaxy Nexus didn't launch till mid December. I'd love to see the breakouts as I'm sure the $99 i4 is far more appeasing than a 299 phone anyway. With LTE phones coming down to 199, and the Spectrum, D4, and Razor Maxx all launching now it'll be interesting to see how things settle down in Q1.

EDIT: Verizon sold 15 million Android phones and 10.8 million iPhones over the course of 2011.

This quarter will be interesting indeed.

iPhone sales were disapointing when iPhone launched on Verizon. They still sold a lot but less than many were expecting. SOem thought this was a sign of Android strength but is appears verizon wantobe iPhone users were holding out for a new phone. Logical really when you consider the 4 was already close to 6 months old.

The next quarter could go either way.

What will also be interesting to see is how HTC do. Burst on the scene with a blast but faded last quarter.
post #20 of 32
Quote:
Originally Posted by Corrections View Post

Voice dictation is already there

Ah, sorry, you're right. I interpreted that backwards; we don't yet have TTS for e-mail and a few others.



Your username has certainly been shown to be apt. Good for you.

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
Reply

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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post #21 of 32
Quote:
Originally Posted by thataveragejoe View Post

These aren't really surprising numbers given the launch of the 4S, pent up Verizon holdouts from the 4, and holiday period. I'm more curious to see how the current quarter trend fairs.

Yup, as the title says, present trends are always the ones we want to see the most.

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post #22 of 32
when will we see the numbers?
post #23 of 32
Great. Now the analysts will latch on to this information and predict that Apple sold 42.731 billion iPhones last quarter and if they sell a single unit less, the stock will plummet.

Actually, it turns out that it's already happening - shares are down more than 1% so far today.
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Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
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post #24 of 32
It's also funny that the resident trolls that infest AI are (as usual) convenient quiet about this and certain Android-centric sites don't make a single mention about this article.
post #25 of 32
Quote:
Originally Posted by scotty321 View Post

Forget Siri, which I find completely unhelpful. What's MOST impressive about the iPhone 4S is something that is based on Siri: SYSTEMWIDE VOICE DICTATION (in every single app). Now THAT is truly awesome.

I just wish my telephone dialing and music playing commands could be done locally. The lag that was introduced when that went onto the cloud is really annoying.
post #26 of 32
Quote:
Originally Posted by sflocal View Post

It's also funny that the resident trolls that infest AI are (as usual) convenient quiet about this and certain Android-centric sites don't make a single mention about this article.

Actually other sites are talking about this, but they give even more information than AI gave. If you get past the headline, which I suspect many of you would call biased, you'll see that the article lists full annual sales as well as sales for the fourth quarter.

http://www.droid-life.com/2012/01/24...11/#more-59339
post #27 of 32
Quote:
Originally Posted by jragosta View Post

Great. Now the analysts will latch on to this information and predict that Apple sold 42.731 billion iPhones last quarter and if they sell a single unit less, the stock will plummet.

Actually, it turns out that it's already happening - shares are down more than 1% so far today.

This is what happens when you don't understand the stock market.

Expectations are all that matters. Apple hit an ALL TIME HIGH this past month. That's because people are really optimistic. If Apple doesn't meet the most optimistic expectation, the people who shared that expectation will be disappointed, and they will sell their stock.

That will cause the stock to drop back to where it WOULD HAVE BEEN if expectations had been lower.

To give a simple, numerical example:

Apple starts at $350, and expectations for earnings are $8 per share. Say expectations increase to $10 earnings, and drive Apple shares to $400, and then expectations increase to $11, driving it to $425.

When earnings come out, and they hit $10, the stock falls back to $400. People who don't understand the world and think everyone is out to get them complain that Apple PLUNGED because expectations were too high.

People who do understand the world (they call them "smart money") see that Apple rose from $350 to $400 and are very happy with that. They understand that if someone is disappointed, they will sell. But if they had never bought between $400 and $425, the stock would have stayed at $400 and not fallen after earnings.

I don't understand why more people aren't ashamed to be dumb money. It's like finding a family that sacrifices virgins to make the sun keep rising. Being ignorant of something so simple and easy to learn about should be shameful. It's not complicated, how this all works.

Overexcitement causes the stock to rise too much, then reality sets in and it falls back to reflect reality. The end result is the same, just because there's a quick round trip from 400 to 425 and back, doesn't change the value of the shares - $400.
post #28 of 32
Quote:
Originally Posted by sflocal View Post

It's also funny that the resident trolls that infest AI are (as usual) convenient quiet about this and certain Android-centric sites don't make a single mention about this article.

Yep. Their silence is deafening. In 2 quarters, the iPhone has become 1/2 of Verizon's smartphone market. The same can probably be said for AT&T, and it might be close for Sprint.

It's too bad that Apple is doomed.
post #29 of 32
Quote:
Originally Posted by F1Ferrari View Post

Yep. Their silence is deafening. In 2 quarters, the iPhone has become 1/2 of Verizon's smartphone market. The same can probably be said for AT&T, and it might be close for Sprint.

It's too bad that Apple is doomed.

The silence is refreshing to say the least. I wonder if iMessage will still work next year when Apple is out of business.
post #30 of 32
Quote:
Originally Posted by F1Ferrari View Post

Yep. Their silence is deafening. In 2 quarters, the iPhone has become 1/2 of Verizon's smartphone market. The same can probably be said for AT&T, and it might be close for Sprint.

It's too bad that Apple is doomed.

I'm actually surprised it's not higher. Most of the people that bought a Droid were up for an upgrade and many of those really wanted an iPhone. Yes I'm an Android user but also own Apple devices. I see the plus and minuses in both. I've never bad mouthed the iPhone, in fact I often recommend it to those I believe would benefit from its ease of use and user experience. I don't get into the iOS vs Android arguments because they're simply childish. A Android user will never make you see things his/her way and vice versa.
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post #31 of 32
Quote:
Originally Posted by AppleInsider View Post

iPhone sales are greater at AT&T

But do we know that is still true? Has ATT announce their numbers yet? 4.2 of 7.7 million Verizon smartphones were iPhone. ATT said they sold a total of 6 million smartphones, but I didn't see in the article that they've said how many of those were iPhones. 70% of their total smartphone sales would have to have been iPhones to top Verizon's 4.2 million.
post #32 of 32
This is interesting: Despite AT&T and Verizon being on "equal" footing with the release of the iPhone 4S AT&T managed to sell 7.6 million iPhones compared to Verizon's 4.2 million iPhones. That's 80% more iPhones. Granted, AT&T also has the iPhone 3GS to sell but there is no way that accounts for such a wide gap. So what happened to everyone jumping ship from AT&T as soon as Verizon gets the iPhone?

"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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