iPhone helps AT&T continue subscriber gains on Verizon
Verizon and AT&T have both reported their latest quarterly earnings, and the strength of the iPhone has continued to help AT&T close the gap on the market leader.
Update: In a conference call following Monday's earnings report, Verizon CEO Ivan Seidenberg said his company would welcome the iPhone on its network if Apple is interested, according to Digital Daily.
“This is a decision that is exclusively in Apple’s court,” Seidenberg said. “Obviously we would be interested if they thought it would make sense for them to have us as a partner. And so we will leave it with them on that score... We want to broaden the base of choice for customers, and hopefully along the way, Apple, as well as others, will decide to jump on the bandwagon.”
In its earnings reported Monday morning, Verizon said it now has an estimated total of 89 million subscribers, after adding 1.2 million customers during the September quarter. Last week, AT&T announced it added 2 million wireless subscribers during the same period, bringing its total base of customers to 81.6 million.
AT&T's 2 million customer increase was the highest third-quarter gain in company history. Officials said nearly 40 percent of the 3.2 million new iPhone activations were customers new to AT&T. That means of the 2 million new customers, roughly 1.28 million were iPhone users.
To put the total in perspective, more new customers came to AT&T for the iPhone than the total number of new subscribers gained by Verizon with all handsets during the September quarter.
Verizon's revenue saw a year-over-year increase to $27.27 billion in Monday's earnings report, but profit fell to $2.89 billion, or 41 cents per share. In the year-ago frame, it was $3.2 billion, or 59 cents a share.
Despite coming in much lower than AT&T, Verizon's 1.2 million new subscribers was ahead of analyst expectations of about 1 million.
As AT&T has continued to gain on Verizon thanks in part to exclusivity of the iPhone, the CEO of the nation's second-largest wireless provider also discussed the prospect of the iPhone becoming available on other carriers. Ralph de la Vega said during a question and answer session that he believes his company's portfolio will remain strong after the iPhone is no longer exclusive.
"We have a legacy of having a great portfolio... that will continue after the iPhone is no longer exclusive to us," de la Vega said. "We think we will continue after the iPhone... to drive (results)."
To combat the success of the iPhone, Verizon has turned to the Google Android mobile operating system. Google and Verizon intend to create, market and distribute products and services featuring Android-powered phones.
Verizon, in recent weeks, has also become aggressive in its advertising, directly mocking AT&T and Apple in a TV spot that compares the two providers' coverage maps. With a play on Apple's famous "there's an app for that" commercials, Verizon's twist declares "there's a map for that," to explain AT&T's inferior network coverage. In addition, a commercial for the Motorola Droid on Verizon's network also spoofs Apple's iPhone ads.
Update: In a conference call following Monday's earnings report, Verizon CEO Ivan Seidenberg said his company would welcome the iPhone on its network if Apple is interested, according to Digital Daily.
“This is a decision that is exclusively in Apple’s court,” Seidenberg said. “Obviously we would be interested if they thought it would make sense for them to have us as a partner. And so we will leave it with them on that score... We want to broaden the base of choice for customers, and hopefully along the way, Apple, as well as others, will decide to jump on the bandwagon.”
In its earnings reported Monday morning, Verizon said it now has an estimated total of 89 million subscribers, after adding 1.2 million customers during the September quarter. Last week, AT&T announced it added 2 million wireless subscribers during the same period, bringing its total base of customers to 81.6 million.
AT&T's 2 million customer increase was the highest third-quarter gain in company history. Officials said nearly 40 percent of the 3.2 million new iPhone activations were customers new to AT&T. That means of the 2 million new customers, roughly 1.28 million were iPhone users.
To put the total in perspective, more new customers came to AT&T for the iPhone than the total number of new subscribers gained by Verizon with all handsets during the September quarter.
Verizon's revenue saw a year-over-year increase to $27.27 billion in Monday's earnings report, but profit fell to $2.89 billion, or 41 cents per share. In the year-ago frame, it was $3.2 billion, or 59 cents a share.
Despite coming in much lower than AT&T, Verizon's 1.2 million new subscribers was ahead of analyst expectations of about 1 million.
As AT&T has continued to gain on Verizon thanks in part to exclusivity of the iPhone, the CEO of the nation's second-largest wireless provider also discussed the prospect of the iPhone becoming available on other carriers. Ralph de la Vega said during a question and answer session that he believes his company's portfolio will remain strong after the iPhone is no longer exclusive.
"We have a legacy of having a great portfolio... that will continue after the iPhone is no longer exclusive to us," de la Vega said. "We think we will continue after the iPhone... to drive (results)."
To combat the success of the iPhone, Verizon has turned to the Google Android mobile operating system. Google and Verizon intend to create, market and distribute products and services featuring Android-powered phones.
Verizon, in recent weeks, has also become aggressive in its advertising, directly mocking AT&T and Apple in a TV spot that compares the two providers' coverage maps. With a play on Apple's famous "there's an app for that" commercials, Verizon's twist declares "there's a map for that," to explain AT&T's inferior network coverage. In addition, a commercial for the Motorola Droid on Verizon's network also spoofs Apple's iPhone ads.
Comments
Only Apple.
I'd be very wary of mocking the iPhone if I were Verizon. The history of those who mock it isn't too good
Yep, think the music Industry, MP3 manufacturers, NBC and the rest of the Television Industry, the Movie Industry, PC manufactures who make laptops costing $1,000, or more MicroSoft, Dell, HP or and now Verizon can be added to that list.
Oh John Sculley and his management team and the then board of directors and the shareholders that bailed in the 90's When Jobs was told to leave!
Oh, the EU and the Chinese phone company that did not go with Apple!
Oh and lastly, my 2 brother-in-law's who are cheap dullards!
http://venturebeat.com/2009/10/24/an...s-more-muscle/
that points out that the carriers apparently see Android as a way to essentially promote their own services, as opposed to the iPhone's more, "Go forth on the Internet," approach. Seems sort of like AOL vs. the Web all over again, but will it play out in the same way? My guess is, yes.
However I don't think its good that Verizon and AT&T are growing so much larger than all other mobile phone companies.
Looks like Verizon's "there's a map for that," to explain AT&T's inferior network coverage over Verizon's superior network coverage, should tell Verizon, a superior Apple product trumps superior network coverage! So there!
It's amazing, that even two years in, the iPhone is so game-changing that people are willing to put up with AT&T in order have it.
Only Apple.
And that would be me. Thank god I live in the northeast where AT&T has a lot of 3G coverage according to the Verizon's "there's a Map" for that ad.
I'd be very wary of mocking the iPhone if I were Verizon. The history of those who mock it isn't too good
Really - tell that to Justin Long and "I'm A MAc , your a PC" ads. But then you may be right 'cause Widows 7 is out and those ads now look more meanspitered than amusing. Politcal advertising at its worst.
Really - tell that to Justin Long and "I'm A MAc , your a PC" ads. But then you may be right 'cause Widows 7 is out and those ads now look more meanspitered than amusing. Politcal advertising at its worst.
You people who do nothing put copy-cat criticize everything under the sun don't seem to realize that your favorite targets just seem to continue to prosper and profit despite your silly cracks.
They prosper and profit mainly because they offer good products and services people want, and they deliver them in volume--basic economics.
Though nothing is perfect in the world, and though a number of people may indeed have their respective problems with this and that company, the facts of generally rising important statistics for Apple, AT&T, etc. should speak far louder to the sane and rational than all the "anti-babble" you people spout.
Apple's "Get a Mac" ad series is most likely its longest-lived and most successful. Why else would they continue it for years now? It's laughable how you armchair critics think you know far better how to run Apple than its current management.
...waits for samab to denigrate the iPhone again...
I don't actually denigrate the iphone. My point has always been that "half-a.s.s.ed" iphone killers have been doing relatively well enough in sales.
It is interesting how Verizon bought 14 million new subscribers, because of the iPhone AT&T is still growing faster and earning more profit. Where would Verizon be if it had not bought Alltel.
However I don't think its good that Verizon and AT&T are growing so much larger than all other mobile phone companies.
Verizon didn't buy Alltel because of the iphone. Verizon bought Alltel because it was cheap --- as the venture capitalist firms who bought Alltel couldn't get cheap capital to finance the deal anymore.
It's amazing, that even two years in, the iPhone is so game-changing that people are willing to put up with AT&T in order have it.
Only Apple.
It's like when you get married even though you may hate your in-laws.
I don't actually denigrate the iphone. My point has always been that "half-a.s.s.ed" iphone killers have been doing relatively well enough in sales.
In light of tumbling revenues and profits of many handset makers, while iPhone sales grow every quarter, are you so sure about that.
Verizon didn't buy Alltel because of the iphone. Verizon bought Alltel because it was cheap --- as the venture capitalist firms who bought Alltel couldn't get cheap capital to finance the deal anymore.
I didn't say Verizon bought Alltel because of the iPhone. I observed the results of Verizon buying Alltel in context with the iPhone's success. I think asking what would Verizon look like today if they had not bought Alltel is a good question.
Not saying ATT network is perfect ,but for the most Part its there when I need it.
If Verizon had Roll over then ATT would have something to worry about.
I didn't say Verizon bought Alltel because of the iPhone. I observed the results of Verizon buying Alltel in context with the iPhone's success. I think asking what would Verizon look like today if they had not bought Alltel is a good question.
(1) Verizon would have been less profitable because Verizon did really a nice job cutting cost with the Alltel merger.
(2) Verizon wouldn't have been able to do the "there's a map for that" commercial because Alltel actually had the largest wireless coverage on a square miles basis. Alltel covers large rural areas with not many population.
Alltel is a southern rural area carrier --- doesn't really matter much to the high-tech iphone world.
(4) AT&T would continue to grow faster, VZ would have no comparable handset to match the growth.
(3) AT&T would have 81.6 million subscribers, VZ would have around 75 million.
(4) AT&T would continue to grow faster, VZ would have no comparable handset to match the growth.
Verizon Wireless never cared about the number 1 carrier status --- only fanbois care about that. VZW lost their number 1 status when Cingular bought AT&T Wireless --- what did VZW do to close that gap? Nothing, VZW continued to grow what they want to grow --- postpaid subscriber base. VZW could have closed that gap a lot more if they do what AT&T did --- buy market share with prepaid and MVNO's. But Verizon Wireless didn't do that.
How would AT&T grow faster? Alltel's customers are in Kentucky, Arkansas.... --- and they ain't the iphone crowd. VZW would still have no comparable handset with or without the Alltel merger.
Update: In a conference call following Monday's earnings report, Verizon CEO Ivan Seidenberg said his company would welcome the iPhone on its network if Apple is interested, according to Digital Daily.
?This is a decision that is exclusively in Apple?s court,? Seidenberg said. ?Obviously we would be interested if they thought it would make sense for them to have us as a partner. And so we will leave it with them on that score... We want to broaden the base of choice for customers, and hopefully along the way, Apple, as well as others, will decide to jump on the bandwagon.?
It still sounds like Verizon wants Apple to do things Verizon's way. Apple wants Verizon to do things Apple's way (like AT&T did). Apple is driving the bandwagon and Verizon is the one who needs to do the jumping.