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Apple's iPhone accounted for 51% of all smartphone activations at Verizon in Q2

post #1 of 53
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More than half of all smartphone activations in the second quarter at Verizon, the largest wireless provider in the U.S., were accounted for by Apple's iPhone, the carrier announced in its earnings on Thursday.

Verizon


Verizon activated a total of 7.5 million smartphones in the quarter, with about 27 percent of those new to the carrier. During a conference call with investors and members of the media, Verizon Chief Financial Officer Fran Shammo revealed that 3.8 million of those smartphones were Apple's iPhone.

In comparison, Verizon activated just 2.7 million iPhones in the same quarter a year ago. That means iPhone activations grew 41 percent year over year at Verizon.

The numbers also show that Apple's share of Verizon's smartphone activations continues to grow. A year ago, the iPhone accounted for less than half of all Verizon activations, as the carrier saw 2.9 million Android-based devices added to its network.

Apple also managed to maintain more than half of all smartphones activated at Verizon during the quarter despite the fact that Samsung launched its latest flagship handset, the Galaxy S4. Verizon did not provide a breakdown of exactly how many of the remaining 3.7 million smartphones were Android devices.

verizon


Verizon also didn't say how many of the iPhones activated last quarter were Apple's latest iPhone 5 versus the legacy iPhone 4S and iPhone 4. But the carrier did disclose that it activated 6.4 million 4G LTE devices during the quarter, including Apple's latest iPhone and iPad models.

For the quarter, Verizon's wireless business saw revenues grow 7.5 percent year over year to $20 billion. Total net retail connections were up by 1 million.

"Verizon?s consistent strategic investments in wireless, FIOS and global networks drove strong financial performance in the first half of 2013,? said Verizon Chairman and CEO Lowell McAdam. "Having posted double-digit earnings growth in five of the last six quarters, we are focused on continuing to provide the best portfolio of products on the most reliable networks; capturing incremental revenue growth in broadband, video and cloud services; and sustaining our earnings and cash-flow momentum."
post #2 of 53
Lets see, even though activations grew 41% YOY the analysts will focus on the drop from last quarter. When it comes to Apple seasonality never seems to matter.
post #3 of 53
And get ready for the lower cost iPhone, 4S at $0, 5 at $99, and the 5S launch. In addition, the repeat purchases from the initial launch of the iPhone on Verizon

I see a real chance for Apple's share at Verizon to hit 60% in next 6 months

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post #4 of 53

I wonder how they count those 'activations' if you activate a phone, return it, and activate a second phone.

post #5 of 53
And just wait until iOS 7 drops, plus all the new hardware coming out in the fall, like new iPhone, new iPads, etc.

I think that a lot of people that have been under contract with a crappy Android phone are eventually going to want to upgrade to something better, so that they can get out of the gutter, when their contracts expire.

These VeriZn iPhone numbers are pretty impressive.
post #6 of 53
So iPhone growth at big red amongst rumors that they aren't selling as many as expected/committed?

Either the talk of Verizon potentially needing to pay Apple $14 million is true and it motivated them to start actually pushing the iPhone, or they just decided to start pushing it, or customers are finally realizing that they want the iPhone and aren't accepting and android as just like an iPhone.
post #7 of 53
Wall Street consensus was 3.5M, Apple came in at 3.9M. Wonder if this indicates a better quarter than people think?
post #8 of 53
And then Apple should come out with the "iPhone +" next Spring. 4.8"

Game. Set. Match

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post #9 of 53
Quote:
Originally Posted by anonymouse View Post

I wonder how they count those 'activations' if you activate a phone, return it, and activate a second phone.

I would think that multiple activations on the same number would be discounted.
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post #10 of 53

They didnt disclose the iphone numbers at first, they waited for someone to ask on the call. Very good number indeed, iphone sales looks healty in the US at least.

post #11 of 53
Quote:
Originally Posted by Apple ][ View Post

And just wait until iOS 7 drops, plus all the new hardware coming out in the fall, like new iPhone, new iPads, etc.

I think that a lot of people that have been under contract with a crappy Android phone are eventually going to want to upgrade to something better, so that they can get out of the gutter, when their contracts expire.

These VeriZn iPhone numbers are pretty impressive.

It's been over 2 years since VZW got the iPhone, so most that were 'stuck' with a Android phone should've been able to upgrade by now.
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post #12 of 53
Despite some stories to the contrary, tales of Apple's demise have been greatly exaggerated! Now let's add the 5S (or whatever it will be called) and an entry level, lower priced option for emerging markets, and let's see how many iPhones fly off the shelves in the next few quarters!AAPL stock will be back over $550 by November....count on it!
post #13 of 53
Quote:
Originally Posted by Rogifan View Post

Wall Street consensus was 3.5M, Apple came in at 3.9M. Wonder if this indicates a better quarter than people think?

 

Its half of the story, this confirms the iphones is still doing well in the US. Problem is every sales stats outside the US all points to lower iphone sales YoY. When the US does good, Canada and UK also do good.  Those 3 are a nice chunk of the total sales, we may even out on average.  Last year number and this quarter consensus is 26 millions.

 

We are still a long way down, in past years people were wondering if the iphones beated by 30% or 50%, today people are worried they wont make last year numbers.


Edited by herbapou - 7/18/13 at 6:52am
post #14 of 53
Quote:
Originally Posted by Red Oak View Post

And then Apple should come out with the "iPhone +" next Spring. 4.8"

Game. Set. Match

I wouldn't be too sure of that. This is a conversation I overheard in a department store 2 days ago.

Young man: "what phone do you have?"

Young lady: "I have the iPhone"

Young man: "ewwww, really?"

Young lady: "yeah, I know, but I'm saving to get the SGS 4"

Inthe minds of many people Samsung phones are the better choice. Whether you like them or not you have to admit that they've done a great job of increasing mind share.
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post #15 of 53
Quote:
Originally Posted by Red Oak View Post



I see a real chance for Apple's share at Verizon to hit 60% in next 6 months

They were 63% in 2012Q4 - so yea - predicting 60% this Q4 is not much of a stretch.

post #16 of 53
Quote:
Originally Posted by herbapou View Post

Its half of the story, this confirms the iphones is still doing well in the US. Problem is every sales stats outside the US all points to lower iphone sales YoY. When the US does good, Canada and UK also do good.  Those 3 are a nice chunk of the total sales, we may even out on average.  Last year number and this quarter consensus is 26 millions.

We are still a long way down, in past years people were wondering if the iphones beated by 30% or 50%, today people are worried they wont make last year numbers.
To expect those kind of growth rates to continue is ridiculous. Apple beat the consensus for Verizon sales, and was up 41% YOY. That's positive. Especially when all these analysts are out there saying the smartphone market (especially high end) is saturated.
post #17 of 53

Only 51%?? Apple is DOOMED

post #18 of 53
Quote:
Originally Posted by dasanman69 View Post


I wouldn't be too sure of that. This is a conversation I overheard in a department store 2 days ago.

Young man: "what phone do you have?"

Young lady: "I have the iPhone"

Young man: "ewwww, really?"

Young lady: "yeah, I know, but I'm saving to get the SGS 4"

Inthe minds of many people Samsung phones are the better choice. Whether you like them or not you have to admit that they've done a great job of increasing mind share.

 

imo that only because there are lots of folks who wants a bigger screen and Apple doesnt have one. Seriously, Samsung didnt innovate much other than making bigger screens. They did incremental upgrades of internal and a bigger screen. Granted they beat the iphone 5 on all metrics indeed, but I am not so sure they can come out with something really new like Apple does. Well Samsung did a pen, not sure its really usefull.

 

On the other hand, Apple could come out with something out of the blue. fingerprint scan combine with mobile payment and maybe an association with Visa or banks could revamp that market. The EU and Canada are now using chips on ATM card and credit cards, the US is behind but could leap with something like this.


Edited by herbapou - 7/18/13 at 7:03am
post #19 of 53
Quote:
Originally Posted by herbapou View Post

 

Its half of the story, this confirms the iphones is still doing well in the US. Problem is every sales stats outside the US all points to lower iphone sales YoY. When the US does good, Canada and UK also do good.  Those 3 are a nice chunk of the total sales, we may even out on average.  Last year number and this quarter consensus is 26 millions.

 

We are still a long way down, in past years people were wondering if the iphones beated by 30% or 50%, today people are worried they wont make last year numbers.

Statcounter suggests Europe is down, Australia, NZ is down.  China market share is stable.  iOS rising in Russia, Brazil, Japan.  So - not falling everywhere.  Not even close.

post #20 of 53
Quote:
Originally Posted by herbapou View Post

imo that only because there are lots of folks who wants a bigger screen and Apple doesnt have one. Seriously, Samsung didnt innovate much other than making bigger screens. They did incremental upgrades of internal and a bigger screen. Granted they beat the iphone 5 on all metrics indeed, but I am not so sure they can come out with something really new like Apple does. Well Samsung did a pen, not sure its really usefull.

It's definitely one of the reasons. When I first saw the Note 2 I thought it was too big and that nobody was going to buy them yet to my amazement many have.
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post #21 of 53
Quote:
Originally Posted by brianloftus View Post

Statcounter suggests Europe is down, Australia, NZ is down.  China market share is stable.  iOS rising in Russia, Brazil, Japan.  So - not falling everywhere.  Not even close.

 

Well forget Russia, all of the carriers have drop the iphone, thanks to Apple totalitarianism ways of doing business with the carriers. I complety agrees with the carriers, if I was them I would so tell apple to go take a hike.

 

iphones sales are down in Japan... were are you getting youre info?

iphones sales not doing good in brazil either, price is too high.


Edited by herbapou - 7/18/13 at 7:19am
post #22 of 53
Quote:
Originally Posted by herbapou View Post

Well forget Russia, all of the carriers have drop the iphone, thanks to Apple totalitarianism ways of doing business with the carriers. I complety agrees with the carriers, if I was them I would so tell apple to go take a hike.
totalitarianism? Hyperbole much? Although I'm not surprised you would side with the carriers. 1wink.gif. For me Apple calling the shots is one reason I own an iPhone. No carrier bloatware, no carrier logo on my hardware, carrier doesn't dictate when I get software updates. Doesn't bother me one bit that Apple basically treats them like a utility.
post #23 of 53
More useless figures for Apple's iPhone. The only thing that matters to Wall Street is that Apple's global market share fell and Apple has sold considerably less smartphones than it did previously. Apple is still seen doomed as a company and the share price needs to fall a lot further. Google deliberately gave Android away to smartphone vendors to put a serious crimp in future iPhone sales. It would have been easy for Apple to sell many more iPhones over a longer period of time if the smartphone market didn't become totally glutted with hundreds of millions of cheap Android smartphones. The smartphone sales wall came way before its time because of Google's freely distributed Android OS. iPhones sales got totally choked off.

Apple will never again see quarters of selling 45 million iPhones because of Android device glut. 95% of Android smartphone vendors are making very little money and only Samsung appears to be benefiting but it irreparably damaged Apple's past and future iPhone business. I sure hope Apple eventually goes after Google's search engine business to choke off some of Google's ad revenue just for kicks. Give Google a taste of how it feels to have their main source of revenue hindered. Wall Street continues to give Google a free pass because it has no competition in market share. They need to get some serious competition as soon as possible.
post #24 of 53
Quote:
Originally Posted by herbapou View Post

Well forget Russia, all of the carriers have drop the iphone, thanks to Apple totalitarianism ways of doing business with the carriers. I complety agrees with the carriers, if I was them I would so tell apple to go take a hike.

I think that you're completely ignoring the positive aspects of Apple's "totalitarianism".

If it weren't for Apple being strong handed, then all Apple phones would almost definitely be filled up with carrier bloatware, junk software and the whole software updating process would be complete crap. And the carriers would put their ugly ass logos all over the phone too.

I am a fan of totalitarianism.
post #25 of 53
Quote:
Originally Posted by Rogifan View Post


totalitarianism? Hyperbole much? Although I'm not surprised you would side with the carriers. 1wink.gif. For me Apple calling the shots is one reason I own an iPhone. No carrier bloatware, no carrier logo on my hardware, carrier doesn't dictate when I get software updates. Doesn't bother me one bit that Apple basically treats them like a utility.

 

The problem is often not what you mention, but minimum number of sales over a period of time. And imo, Apple could bend on apps. Carriers should be allow to pre-install there app, so what? I have a carrier app that tells me my usage stats, I dont see whats the big deal on pre-loading it. Its better for the consumers imo, they wont have to dig it up the app store.

 

I agree that Apple needs to draw a line somewhere, like not allowing carriers to take over the home screen. But currently there no negociations going on, you do what Apple says or its nothing. Seriously, lets say you buy an AT&T contract phone and you have ONE folder called AT&T on the first screen...   They could fill it up to max capacity, so what?  This will backfire in there face at some point.


Edited by herbapou - 7/18/13 at 7:43am
post #26 of 53
Quote:
Originally Posted by herbapou View Post

Quote:
Originally Posted by brianloftus View Post

Statcounter suggests Europe is down, Australia, NZ is down.  China market share is stable.  iOS rising in Russia, Brazil, Japan.  So - not falling everywhere.  Not even close.

Well forget Russia, all of the carriers have drop the iphone, thanks to Apple totalitarianism ways of doing business with the carriers. I complety agrees with the carriers, if I was them I would so tell apple to go take a hike.

iphones sales are down in Japan... were are you getting youre info?
iphones sales not doing good in brazil either, price is too high.

High prices in many countries have often quite different reasons than Apple pricing policy: import duties, telco monopolies, taxes, etc.

The move in Russia is more reflecting the fact that in many counties ppl are better off importing a (un)used phone through eBay than buying a expensive phone through carriers, particularly in markets that are prepay dominated, in which there are weak anti-trust laws (and competitors actually act in unison).
iPhone is very popular in Russia for those who can afford it, but large sections of the population have buying power more like in a third world country than what Americans are used to have. It's also a country with a shrinking population, low birthrates combined with emigration.
So the carrier thing in Russia won't affect Apple too much.
post #27 of 53
Quote:
Originally Posted by Apple ][ View Post


I think that you're completely ignoring the positive aspects of Apple's "totalitarianism".

If it weren't for Apple being strong handed, then all Apple phones would almost definitely be filled up with carrier bloatware, junk software and the whole software updating process would be complete crap. And the carriers would put their ugly ass logos all over the phone too.

I am a fan of totalitarianism.

Apple is a strong and firm negotiator. But to cal it totalitarianism is not just hyperbolic (I don't mean that disrespectfully), it is wrong.

 

Soviet totalitarianism, for example, included monitoring and control of the private lives of the citizens. Which system provides more means to monitor and track users - iOS or Android?

 

Let's face it, it's hard to ignore that association between totalitarianism and communism. Which OS is closer to communism? Certainly not iOS.

 

So, I'd argue if there is a totalitarian mobile OS out there, Android is a closer fit.

post #28 of 53
Quote:
Originally Posted by dnd0ps View Post

Only 51%?? Apple is DOOMED

zzzzz

post #29 of 53
Quote:
Originally Posted by ankleskater View Post

Apple is a strong and firm negotiator. But to cal it totalitarianism is not just hyperbolic (I don't mean that disrespectfully), it is wrong.

Soviet totalitarianism, for example, included monitoring and control of the private lives of the citizens. Which system provides more means to monitor and track users - iOS or Android?

Let's face it, it's hard to ignore that association between totalitarianism and communism. Which OS is closer to communism? Certainly not iOS.

So, I'd argue if there is a totalitarian mobile OS out there, Android is a closer fit.

I don't disagree at all.

I used the word, because I was responding to somebody else who was using that word, and the first time I used it, I put it in quotes.
post #30 of 53
Quote:
Originally Posted by Constable Odo View Post

More useless figures for Apple's iPhone. The only thing that matters to Wall Street is that Apple's global market share fell and Apple has sold considerably less smartphones than it did previously. Apple is still seen doomed as a company and the share price needs to fall a lot further. Google deliberately gave Android away to smartphone vendors to put a serious crimp in future iPhone sales. It would have been easy for Apple to sell many more iPhones over a longer period of time if the smartphone market didn't become totally glutted with hundreds of millions of cheap Android smartphones. The smartphone sales wall came way before its time because of Google's freely distributed Android OS. iPhones sales got totally choked off.

Apple will never again see quarters of selling 45 million iPhones because of Android device glut. 95% of Android smartphone vendors are making very little money and only Samsung appears to be benefiting but it irreparably damaged Apple's past and future iPhone business. I sure hope Apple eventually goes after Google's search engine business to choke off some of Google's ad revenue just for kicks. Give Google a taste of how it feels to have their main source of revenue hindered. Wall Street continues to give Google a free pass because it has no competition in market share. They need to get some serious competition as soon as possible.

 

Depends, if Apple enters multiple market segments this may changed. If they stay high end, they are painting themselves into a niche indeed.

post #31 of 53
Quote:
Originally Posted by herbapou View Post

The problem is often not what you mention, but minimum number of sales over a period of time. And imo, Apple could bend on apps. Carriers should be allow to pre-install there app, so what? I have a carrier app that tells me my usage stats, I dont see whats the big deal on pre-loading it. Its better for the consumers imo, they wont have to dig it up the app store.

I agree that Apple needs to draw a line somewhere, like not allowing carriers to take over the home screen. But currently there no negociations going on, you do what Apple says or its nothing. This will backfire in there face at some point.
Sorry, I don't want carrier bloatware on my phone. I want them to be just like my ISP - basically invisible.
post #32 of 53
Quote:
Originally Posted by brianloftus View Post

Statcounter suggests Europe is down, Australia, NZ is down.  China market share is stable.  iOS rising in Russia, Brazil, Japan.  So - not falling everywhere.  Not even close.

StatCounter shoes iOS very stable in the EU and Australia. Given the growing markets, that would mean increased sales.
post #33 of 53
Quote:
Originally Posted by Constable Odo View Post

Apple will never again see quarters of selling 45 million iPhones because of Android device glut.

You do realize the end of the world was Dec 21 2012 and not 2013. Now you might mean that 55-60 million next Dec quarter is not 45 million but I doubt it.
post #34 of 53
amazing, considering verizon does everything they can to keep people away from the iPhone.
post #35 of 53
Quote:
Originally Posted by Constable Odo View Post

More useless figures for Apple's iPhone. The only thing that matters to Wall Street is that Apple's global market share fell and Apple has sold considerably less smartphones than it did previously. Apple is still seen doomed as a company and the share price needs to fall a lot further. Google deliberately gave Android away to smartphone vendors to put a serious crimp in future iPhone sales. It would have been easy for Apple to sell many more iPhones over a longer period of time if the smartphone market didn't become totally glutted with hundreds of millions of cheap Android smartphones. The smartphone sales wall came way before its time because of Google's freely distributed Android OS. iPhones sales got totally choked off.

Apple will never again see quarters of selling 45 million iPhones because of Android device glut. 95% of Android smartphone vendors are making very little money and only Samsung appears to be benefiting but it irreparably damaged Apple's past and future iPhone business. I sure hope Apple eventually goes after Google's search engine business to choke off some of Google's ad revenue just for kicks. Give Google a taste of how it feels to have their main source of revenue hindered. Wall Street continues to give Google a free pass because it has no competition in market share. They need to get some serious competition as soon as possible.

 

 

Do you get tired of posting your exaggerated rants?

 

We understand, you bought AAPL when it was high, and got burned on the way down. And you blame Tim Cook.

post #36 of 53
Quote:
Originally Posted by Red Oak View Post

And get ready for the lower cost iPhone, 4S at $0, 5 at $99, and the 5S launch. In addition, the repeat purchases from the initial launch of the iPhone on Verizon

I see a real chance for Apple's share at Verizon to hit 60% in next 6 months

I think they'll drop the 4S and use the new polycarb case iphones as the $0 entry phone. That way all the iPhones sold from here on will have 4" screens.

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post #37 of 53
Quote:
Originally Posted by herbapou View Post

 

Its half of the story, this confirms the iphones is still doing well in the US. Problem is every sales stats outside the US all points to lower iphone sales YoY. When the US does good, Canada and UK also do good.  Those 3 are a nice chunk of the total sales, we may even out on average.  Last year number and this quarter consensus is 26 millions.

 

We are still a long way down, in past years people were wondering if the iphones beated by 30% or 50%, today people are worried they wont make last year numbers.

 

The high-end smartphone market is becoming a mature market, thus growth rates are slowing. But it's still a cash cow that can be milked for a long time.

 

Good thing Apple hedged their bets with that whole "iPad" thing. 

 

I don't know why WS freaks out that Apple isn't growing as fast as it once did. It was never valued as a growth company.

post #38 of 53
Quote:
Originally Posted by GadgetCanadaV2 View Post

I think they'll drop the 4S and use the new polycarb case iphones as the $0 entry phone. That way all the iPhones sold from here on will have 4" screens.

 

It might use a hybrid of 4S and iPod touch internals though. Probably the Touch's 4" screen.

 

Will it get LTE?

post #39 of 53
Quote:
Originally Posted by Steven N. View Post


StatCounter shoes iOS very stable in the EU and Australia. Given the growing markets, that would mean increased sales.

 

And don't forget: StatCounter only counts iPhones as iOS in mobile OSes. The iPad is counted separatly and put in with the desktop OSes (as "iOS" there as well). So the total iOS user count is actually better than the graph in StatCounter shows.

 

Another thing with StatC: They don't weigh the countries, just put in the results for all of, let's say, Europe. But they have extremely high count of nodes in a country like Turkey (with low iOS adoption) and relatively few in countries like France and Italy with high iOS rate. So "worldwide" and "regional" stats will be scewed a bit. Separate country stats are OK though.

post #40 of 53
Quote:
Originally Posted by anonymouse View Post

I wonder how they count those 'activations' if you activate a phone, return it, and activate a second phone.

 

Good question.  It's probably two activations.

 

More importantly, carrier activation counts include hand-me-down and resold phones.

 

By including used devices, the numbers look more impressive.

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