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Verizon Wireless adds 1.7M subscribers in Q4, 70% now have smartphones

post #1 of 25
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As competition between U.S. wireless carriers heats up, Verizon Wireless on Tuesday announced the addition of nearly 2 million new subscribers in the fourth quarter of 2013.

Verizon


The late-year additions account for nearly half of the 4.1 million net new subscribers Verizon says they added in 2013. Nearly all of the company's 102.8 million customers are postpaid, with just 5 million subscribers opting for prepaid services.

Verizon appears especially proud of the completion of its 4G LTE rollout, with the company repeatedly referring to the milestone during Tuesday's earnings announcement conference call. More than 300 million Americans now have access to Verizon-provided 4G LTE services in over 500 markets, accounting for 99 percent of Verizon's existing 3G coverage area.

High-speed LTE services are especially important in light of the dramatic market share gains smartphones have made in recent years --?handsets like Apple's iPhone now represent seven out of every ten active lines on Verizon's wireless network.

Revenue increased 5.7 percent year-over-year to $21.1 billion, with revenue from services jumping to $17.7 billion. Average revenue per account, or ARPA, grew 7.1 percent year-over-year to $157.21.

Despite the robust growth, Verizon is facing increased pressure from rivals.

T-Mobile, which has commanded attention in recent weeks for a spate of promotional changes aimed at siphoning customers away from larger carriers, added 4.4 million customers in 2013 and is. Sprint, which will report its own fourth-quarter results on Feb. 11, is also expected to be more aggressive after its acquisition by Japanese carrier SoftBank.
post #2 of 25

70% are smartphones with half of those being iPhones, eh?

 

Yeah, I’m sure Android is selling.

 
Average revenue per account, or ARPA, grew 7.1 percent year-over-year to $157.21.

 

That’s fine. Now how about telling us profit per account.


Edited by Tallest Skil - 1/21/14 at 9:27am

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

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Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #3 of 25
Quote:
Originally Posted by Tallest Skil View Post

70% are smartphones with half of those being iPhones, eh?

Yeah, I’m sure Android is selling.

Odd, but don't they normally release iPhone sales data as well?
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post #4 of 25
Quote:
Originally Posted by dasanman69 View Post

Odd, but don't they normally release iPhone sales data as well?

Maybe they don't want to destroy their non-Apple handset-maker relationships.

post #5 of 25
Quote:
Originally Posted by anantksundaram View Post

Maybe they don't want to destroy their non-Apple handset-maker relationships.

That's possible. I still have a hard time believing how many subscribers they claim to have, at over 100 millions subs means that 1 in 3 people in this country are a VZW customer.
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post #6 of 25
Quote:
Originally Posted by dasanman69 View Post


Odd, but don't they normally release iPhone sales data as well?


They sold 8.8 millions smartphones but didnt disclose the iphones numbers. Last year they sold 9.8 millions smartphones, so they have a YoY decline. Last year iphones number was 6.2 millions iphones.

 

imo Apple didnt sold 6.2 millions iphones out of 8.8 millions smartphones, so the iphone number is probably down YoY. That being said, I think VZ lost sales to sprint and other players, so it blurrs the results. The tablet activation number was 625 k, imo a lot of those are ipads. 

 

Since I have to count this as a bad results for Apple, I must go into earning with limited stock/option exposures. But, because of market share improments and the number of countries at launch this fall, I still think Apple could blowout.


Edited by herbapou - 1/21/14 at 9:42am
post #7 of 25
Quote:
Originally Posted by herbapou View Post


They sold 8.8 millions smartphones but didnt disclose the iphones numbers. Last year they sold 9.8 millions smartphones, so they have a YoY decline. Last year iphones number was 6.2 millions iphones.

imo Apple didnt sold 6.2 millions iphones out of 8.8 millions smartphones, so the iphone number is probably down YoY. That being said, I think VZ lost sales to sprint and other players, so it blurrs the results.

The tablet activation number was 625 k, imo a lot of those are ipads.

Where did you get your numbers from? I'm on the VZ website and I don't see that type of breakdown.
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post #8 of 25
When the iphone 5s and 5c came out last fall. The carriers had very few if any phones for at least three weeks. Apple had them, but in the case of the 5s a wait time. I do not have any reference of the past.
post #9 of 25
Both Verizon and ATT stopped reporting iPhone sales/activations. I'm not sure why but I think it might have started last quarter?
post #10 of 25
Quote:
Originally Posted by herbapou View Post


They sold 8.8 millions smartphones but didnt disclose the iphones numbers. Last year they sold 9.8 millions smartphones, so they have a YoY decline. Last year iphones number was 6.2 millions iphones.

imo Apple didnt sold 6.2 millions iphones out of 8.8 millions smartphones, so the iphone number is probably down YoY. That being said, I think VZ lost sales to sprint and other players, so it blurrs the results. The tablet activation number was 625 k, imo a lot of those are ipads. 

Since I have to count this as a bad results for Apple, I must go into earning with limited stock/option exposures. But, because of market share improments and the number of countries at launch this fall, I still think Apple could blowout.
Apple stock is actually up today, over 1% last time I checked. If Wall Street had reason to believe Verizon numbers meant not so good iPhone numbers for the quarter wouldn't the stock be down today? Even if Apple sold fewer iPhones on Verizon, they weren't on t-mobile last year so maybe that's why. Maybe people are going elsewhere.
post #11 of 25
Quote:
Originally Posted by dasanman69 View Post


Where did you get your numbers from? I'm on the VZ website and I don't see that type of breakdown.

 

those numbers came out on the call, but I am sure some websites have relay them. search it.

post #12 of 25
Quote:
Originally Posted by Rogifan View Post


Apple stock is actually up today, over 1% last time I checked. If Wall Street had reason to believe Verizon numbers meant not so good iPhone numbers for the quarter wouldn't the stock be down today? Even if Apple sold fewer iPhones on Verizon, they weren't on t-mobile last year so maybe that's why. Maybe people are going elsewhere.

 

The high pre-earnings is around $570, so we did not have an earning rally, we are down on it.  imo wall street is mixed on Apple, there is a war between greed and playing safe. imo noone can predict where we will be pre-earnings.  I do have some option play on this.

post #13 of 25
Quote:
Originally Posted by Tallest Skil View Post
 

70% are smartphones with half of those being iPhones, eh?

 

Yeah, I’m sure Android is selling.

 

 

erm.... if half of them are iPhones, what do you think the rest are?

 

That said, it looks like the numbers for the quarter are actually better than half for Apple (not atypical for a 'new release' quarter for Apple, the other 3 quarters things historically shift back to Android until Apple releases its next iteration).  6.2Mil out of 9.8Mil activations- so a little over 62%

 

The number Verizon should be a little concerned about is despite 9.8mil activations they only had a net gain of 1.7mil...  So overall market growth is slowing, and of that people are noticeably moving toward the less expensive unsubsidized plans that are gaining traction.

 

 

Edited by Frood - 1/21/14 at 10:21am
post #14 of 25
Quote:
Originally Posted by herbapou View Post
 


They sold 8.8 millions smartphones but didnt disclose the iphones numbers. Last year they sold 9.8 millions smartphones, so they have a YoY decline. Last year iphones number was 6.2 millions iphones.

 

imo Apple didnt sold 6.2 millions iphones out of 8.8 millions smartphones, so the iphone number is probably down YoY. That being said, I think VZ lost sales to sprint and other players, so it blurrs the results. The tablet activation number was 625 k, imo a lot of those are ipads. 

 

Since I have to count this as a bad results for Apple, I must go into earning with limited stock/option exposures. But, because of market share improments and the number of countries at launch this fall, I still think Apple could blowout.

 

trying to estimate iPhone world wide sales from one Vendor is a fools game.  Especially since the one vendor does not even disclose how many iPhones were sold.  Also:

 

1. Samdung phones may have been down vs last year

2. DoCoMo was not part of last holiday Qtrs results

3. China did not get iPhone last holiday Qtr till mid/late Dec

4. Don't know how many iPhones were shipped to ChinaMobile before year end

5. Europe sales?

6. T-mobile did not have iPhone last year

post #15 of 25
Originally Posted by Frood View Post

erm.... if half of them are iPhones, what do you think the rest are?

 

Android plus Windows plus Blackberry plus…

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #16 of 25
Quote:
Originally Posted by Tallest Skil View Post
 

 

Android plus Windows plus Blackberry plus…

 

lol so yes, pretty much Android :p

post #17 of 25
Quote:
Originally Posted by Frood View Post
 

 

erm.... if half of them are iPhones, what do you think the rest are?

 

That said, it looks like the numbers for the quarter are actually better than half for Apple (not atypical for a 'new release' quarter for Apple, the other 3 quarters things historically shift back to Android until Apple releases its next iteration).  6.2Mil out of 9.8Mil activations- so a little over 62%

 

The number Verizon should be a little concerned about is despite 9.8mil activations they only had a net gain of 1.7mil...  So overall market growth is slowing, and of that people are noticeably moving toward the less expensive unsubsidized plans that are gaining traction.

 

 

 

Youre source link is reporting last year numbers...  

post #18 of 25
Quote:
Originally Posted by anantksundaram View Post
 

Maybe they don't want to destroy their non-Apple handset-maker relationships.

More likely quite the opposite. I would not be surprised if Apple has pressured the carriers to stop reporting the breakouts. They don't like analysts and day traders reverse engineering the numbers and influencing the stock price before they report. 

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post #19 of 25
Quote:
Originally Posted by herbapou View Post

Youre source link is reporting last year numbers...  

The date on the website is today's.
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post #20 of 25
Quote:
Originally Posted by dasanman69 View Post


The date on the website is today's.


numbers are still wrong...

post #21 of 25
Quote:
Originally Posted by Tallest Skil View Post

That’s fine. Now how about telling us profit per account.

Why does that matter? This is from their website.
"29.5 percent operating income margin"
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post #22 of 25
Quote:
Verizon appears especially proud of the completion of its 4G LTE rollout, with the company repeatedly referring to the milestone during Tuesday's earnings announcement conference call. More than 300 million Americans now have access to Verizon-provided 4G LTE services in over 500 markets, accounting for 99 percent of Verizon's existing 3G coverage area.

 

VZ keeps saying that since AT&T been saying their 4G network covers 99% of the US population. Yeah VZ has nice red all over their US map but they seem to be missing 15% of the population I bet when you zoom in to those map there are areas which the decide not to cover.

 

I wonder is VZ mobile is doing what FIOS does, they only put fiber into higher income areas they are not interested in servicing they lower income areas. VZ has to cover more than they show since those with higher incomes do travel near to into lower income areas.

post #23 of 25

"The late-year additions account for nearly half of the 4.1 million net new subscribers Verizon says they added in 2013."

 

Hm. "Late year additions".

 

Whatever could have happened "late in the year" that would account for a bump in subscribers?

 

It's a mystery!

post #24 of 25
Quote:
Originally Posted by Maestro64 View Post

VZ keeps saying that since AT&T been saying their 4G network covers 99% of the US population. Yeah VZ has nice red all over their US map but they seem to be missing 15% of the population I bet when you zoom in to those map there are areas which the decide not to cover.

I wonder is VZ mobile is doing what FIOS does, they only put fiber into higher income areas they are not interested in servicing they lower income areas. VZ has to cover more than they show since those with higher incomes do travel near to into lower income areas.

Rolling out LTE is upgrading the current in place network, whereas with FiOS they're running new cable, putting up new poles, and wiring up a subscriber's residence all over again. Big difference.
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
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post #25 of 25
Quote:
Originally Posted by pdq2 View Post

"The late-year additions account for nearly half of the 4.1 million net new subscribers Verizon says they added in 2013."

Hm. "Late year additions".

Whatever could have happened "late in the year" that would account for a bump in subscribers?

It's a mystery!

It would be more clear cut if the iPhone had just been made available to VZW.
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
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