Verizon sold 3.1M iPhones in Q3 2012, 650K were Apple's iPhone 5

Posted:
in iPhone edited January 2014
Verizon announced its quarterly earnings on Thursday, revealing that the nation's largest carrier sold a total of 3.1 million iPhones in the three-month span, with 650,000 of those being the new iPhone 5.

The iPhone 5 sales represent just a week's worth of the company's September quarter. The iPhone 5 went on sale in late September in the U.S. at carriers Verizon, Sprint and AT&T.

Verizon's earnings are the first indication of iPhone 5 sales since Apple announced it had sold 5 million units in the device's launch weekend in September. That number was lower than investors expected, as Apple struggled to keep up with demand.

While Verizon is the largest wireless carrier in the U.S., sales of the iPhone are typically larger at AT&T, because AT&T was Apple's exclusive carrier partner for years. AT&T will report its own quarterly earnings next week on Oct. 24, while Apple will report its results a day later.

The iPhone accounted for 46 percent of the 6.8 million smartphones Verizon sold in the quarter. The company also highlighted the newly released iPhone 5 as one of seven 4G LTE smartphones it launched in the third quarter.

The total number of Android phones sold by Verizon in the quarter was 3.4 million. That means that combined, the iPhone and Android devices accounted for 6.5 million of the 6.8 million total smartphones sold, leaving competitors Microsoft and Research in Motion to take the remaining 300,000 devices.

Verizon


The presence of smartphones on Verizon's network also continued to increase, and they now represent 53 percent of handsets on its network. The total number of 4G LTE devices also grew to 14.9 million, accounting for 16.5 percent of handsets.

Verizon reported 64 cents in adjusted earnings per share, meeting market consensus. The largest carrier in the U.S. also added 1.535 million postpaid subscribers.

"In the third quarter, Verizon continued to deliver double-digit earnings growth and strong cash generation, and we remain solidly on track to meet our financial objectives for the year," said Lowell McAdam, Verizon chairman and CEO. "With our 4G LTE network advantage, well-received Share Everything Plans and unmatched product portfolio, Verizon Wireless continues to do an outstanding job of balancing growth and profitability. Wireless achieved record profitability in a quarter in which we reported the highest number of retail postpaid gross and net adds in four years."

Comments

  • Reply 1 of 19
    herbapouherbapou Posts: 2,228member
    "Verizon reported selling 3.1M iPhones, just over a fifth (or roughly 651,000) of those were the iPhone 5. To compare, during Q2 Verizon sold 2.7 million iPhones."

    That's pretty good, the 4s sales were not bad so earnings shouldnt be so bad.


    Another good point of interest is they sold 6.8 million smartphones in the third quarter. So the 3.1 millions iphones is almost half of there sales in a quarter where the Galaxy S3 came out and the iphone was about to get a refresh.

    imagine the iphone 5 sales in Q4 where the S3 is old news and the iphone 5 is a new release.
  • Reply 2 of 19
    solipsismxsolipsismx Posts: 19,566member
    1) That's a lot of iPhone 4S's being sold when it's about to get knocked out by a new iPhone. I think we need to remember that most people don't care about having the latest tech right after it comes out.

    2) I know of a lot of people switching to Verizon from AT&T now that they offer the fastest data. I do miss SV&D but their LTE speeds trounce AT&T's speeds. I know it's anecdotal but I'm guessing we'll see an unusual change in subscribers for AT&T and Verizon in the coming quarters we haven't seen since before the debut of the original iPhone.
  • Reply 3 of 19
    jason98jason98 Posts: 768member
    While Verizon is the largest wireless carrier in the U.S., sales of the iPhone are typically larger at AT&T, because AT&T was Apple's exclusive carrier partner for years.

    Two major reasons of lower iphone5 sales:
    1. No simultaneous voice and data
    2. New smartphone customers are forced to expensive shared plans
  • Reply 4 of 19
    solipsismxsolipsismx Posts: 19,566member
    jason98 wrote: »
    Two major reasons of lower iphone5 sales:
    1. No simultaneous voice and data
    2. New smartphone customers are forced to expensive shared plans

    1) That still isn't the case and yet I think we'll see a shift between Verizon and AT&T subscribers moving forward. The ?2Mbs v. ?21Mb/s was clearly the biggest issue for me.

    2) I was happy to put share my Verizon iPad with new Verizon iPhone plan. I was paying $20/month for the iPad data plan and wasn't using much. This is now only $10 and I get to use as much or as little as I want. It's a win-win on the shared plan front. That said, even with my 22% corporate discount and the $10/month savings from the iPad Verizon is still about $15 more a month for the same amount data.
  • Reply 5 of 19
    dasanman69dasanman69 Posts: 13,002member
    solipsismx wrote: »
    1) That still isn't the case and yet I think we'll see a shift between Verizon and AT&T subscribers moving forward. The ?2Mbs v. ?21Mb/s was clearly the biggest issue for me.
    2) I was happy to put share my Verizon iPad with new Verizon iPhone plan. I was paying $20/month for the iPad data plan and wasn't using much. This is now only $10 and I get to use as much or as little as I want. It's a win-win on the shared plan front. That said, even with my 22% corporate discount and the $10/month savings from the iPad Verizon is still about $15 more a month for the same amount data.

    With the faster speeds and larger LTE footprint you know where that extra $15 is going.
  • Reply 6 of 19
    solipsismxsolipsismx Posts: 19,566member
    dasanman69 wrote: »
    With the faster speeds and larger LTE footprint you know where that extra $15 is going.

    Verizon's prices were higher than AT&T before they had LTE for a given amount of data.
  • Reply 7 of 19
    MacProMacPro Posts: 19,822member
    solipsismx wrote: »
    Verizon's prices were higher than AT&T before they had LTE for a given amount of data.

    That's how they paid for the better LTE roll out I'd guess.

    We are a mixed family now, iPhones and iPad on AT&T and one iPad 3 on Verizon ...
  • Reply 8 of 19
    jason98jason98 Posts: 768member
    solipsismx wrote: »
    The ?2Mbs v. ?21Mb/s was clearly the biggest issue for me.

    2mbs is not even a 3G speed. Where are you getting it?
    I have consistent 16mbs at home (faster than my cable) and 45mbs at work with AT&T

    (Not that I defend AT&T as I am one of those who filed official complaints to FCC regarding FaceTime and tethering.)
  • Reply 9 of 19
    Well, it looks like V sold about 15% more iPhones than last quarter. And last quarter there were a total of 26m iPhones sold. Adding 15% to that takes us to 29.9m, which is WELL over the average analyst estimate of 27m (based on the estimates Philip Elmer-DeWitt at Fortune posted).
  • Reply 10 of 19
    DaekwanDaekwan Posts: 175member

    Quote:

    Originally Posted by jason98 View Post





    2mbs is not even a 3G speed. Where are you getting it?

    I have consistent 16mbs at home (faster than my cable) and 45mbs at work with AT&T

    (Not that I defend AT&T as I am one of those who filed official complaints to FCC regarding FaceTime and tethering.)


    1) Every LTE network is blazing fast in the first year it starts up, because its barely being used.  Its like a stretch of new highway that drivers haven't started using yet.  Remember AT&T's LTE network is still fairly new.. and so is their LTE phone selection.  Lets talk in another year as AT&T's LTE network becomes saturated, because the vast majority of smartphones currently being sold support LTE.


     


    2) While I agree Verizon's 3G is pitifully slow for a 3G network, it is consistent and has more coverage than any other US carrier.  Same goes for Verizon's 4G/LTE.  Verizon allows Facetime over cellular.  And more importantly, Verizon allows me to truly use my *unlimited* data with no throttling or caps.  I dont get downgraded from LTE after using 5GB's of data, like AT&T does.  Those are the major reasons why I switched from AT&T over to Verizon about a year ago.  


     


    3) Verizon gives me a 20% corporate discount.  That discount applies to both my paid minutes & data plan.  AT&T only gives me a 15% corp discount.  That discount did not apply to data.  Meaning the same 450min/Unlimited data plan I had on AT&T, is about $10 cheaper a month with Verizon.


     


    3) Truth be told, none of these carriers are your friend.  They are all in it to make as much profit as legally possible.  Meaning they are all constantly coming up with ways to get you to pay as much, as possible, while keeping you as a customer.  You have to pick which poison works best for you and your situation.  In my particular case, there is nothing that I download or anticipate downloading.. on my iPhone (even in the next couple of years) where speeds greater than 20mbs is even necessary.  That includes tethering my laptop.  But if my position changes in a year or two.  Then I'll re-evaluate all of the cellular networks/performance/coverage.. and change carriers if I find a better fit than Verizon.  

  • Reply 11 of 19

    Quote:

    Originally Posted by SolipsismX View Post





    1) That still isn't the case and yet I think we'll see a shift between Verizon and AT&T subscribers moving forward. The ?2Mbs v. ?21Mb/s was clearly the biggest issue for me.

    2) I was happy to put share my Verizon iPad with new Verizon iPhone plan. I was paying $20/month for the iPad data plan and wasn't using much. This is now only $10 and I get to use as much or as little as I want. It's a win-win on the shared plan front. That said, even with my 22% corporate discount and the $10/month savings from the iPad Verizon is still about $15 more a month for the same amount data.


     


    I have an Verizon iPad 3, but stuck with AT&T for the iPhone 5. The AT&T LTE has been fast for me and I am grandfathered into their unlimited (that is not unlimited, but is actually 5gb before throttling) data plan. For $30 a month, I'll take it!

  • Reply 12 of 19
    maestro64maestro64 Posts: 5,043member

    Quote:

    Originally Posted by SolipsismX View Post



    1) That's a lot of iPhone 4S's being sold when it's about to get knocked out by a new iPhone. I think we need to remember that most people don't care about having the latest tech right after it comes out.

    2) I know of a lot of people switching to Verizon from AT&T now that they offer the fastest data. I do miss SV&D but their LTE speeds trounce AT&T's speeds. I know it's anecdotal but I'm guessing we'll see an unusual change in subscribers for AT&T and Verizon in the coming quarters we haven't seen since before the debut of the original iPhone.


    I am not sure that is an accurate statement anymore. I believe there was an article on AI where there was a Speed Survey done for all the various carriers and generations of networks and it say that VZ speed and throughput is not as good a AT&T. They said initially when VZ launched LTE they had the fastest network however as months past it slowing down. The assumption was that as VZ network loads up with users they can not longer sustain the speed where as AT&T has been very consistent since they address their issues from the initial iPhone 1 days.


     


    My son got the Iphone 5 on AT&T and compared it to his friends who have other phones on VZ LTE network his down load speed is noticeably faster, and it is faster even when the iphone is not showing an LTE connection, only 4G.


     


    I think VZ has a bottle neck somewhere in their network and requires more investment on their part to truly say they are the fastest. Grant it theoretically they may be able to achieve a faster speed but it in reality they can not sustain it then it is not fast. It is only as good as the weakest link.

  • Reply 13 of 19
    rogifanrogifan Posts: 10,669member
    jason98 wrote: »
    Two major reasons of lower iphone5 sales:
    1. No simultaneous voice and data
    2. New smartphone customers are forced to expensive shared plans
    No the biggest reason is supply IMO. I don't think Verizon can report it as a sale if the phone didn't ship because the customer still has the opportunity to cancel the sale. If you go on Verizon's website they're still showing shipping delays for the iPhone 5, some into November.
  • Reply 14 of 19
    Verizon advertises Moto phones on tv almost hourly. The adverts focus on functions and features.

    Apple adverts focus on things everybody knows: apps, earphones[who cares]
    The adverts seem dormant.
  • Reply 15 of 19
    nhtnht Posts: 4,522member

    Quote:

    Originally Posted by Daekwan View Post


    1) Every LTE network is blazing fast in the first year it starts up, because its barely being used.  Its like a stretch of new highway that drivers haven't started using yet.  Remember AT&T's LTE network is still fairly new.. and so is their LTE phone selection.  Lets talk in another year as AT&T's LTE network becomes saturated, because the vast majority of smartphones currently being sold support LTE.



     


    AT&T has been upgrading their towers with faster backhaul for years given the data load of the iPhones.  Around my area I was consistently getting around 4 mbps down and 1 mbps up on 3G (hsdpa).


     


    If anyone is going to get crunched it'll be Verizon as they end up with more and more iPhones.

  • Reply 16 of 19


    Originally Posted by ElmoDog View Post

    Apple adverts focus on things everybody knows: apps, earphones[who cares]

    The adverts seem dormant.


     


    Yeah, you don't get it at all.

  • Reply 17 of 19
    dasanman69dasanman69 Posts: 13,002member
    solipsismx wrote: »
    Verizon's prices were higher than AT&T before they had LTE for a given amount of data.

    They also had a bigger 3G footprint. Maintaining and upgrading such a large network isn't without it's cost.
  • Reply 18 of 19
    mkralmkral Posts: 58member


    I have a Sprint iPhone 4S, so I don't have a dog in this fight, but I thought I read somewhere that Verizon's LTE uses an older standard that has a lower top-end speed & they did this because they launched their LTE network earlier.


     


    Also, this is really good news for Apple. These numbers include 'free' Android phones, but not 'free' iPhones since the free iPhone was the 3GS. Now that the 5 is out, the 4 is the free iPhone. This coming quarter will be the first one where Apple has a free phone to compete on the low end at Sprint & Verizon. I'll be very interested to see how the numbers look next quarter. I wouldn't be surprised to see Verizon sell more iPhones than Droids next quarter & for Apple to keep the lead after that.

  • Reply 19 of 19
    dasanman69dasanman69 Posts: 13,002member
    mkral wrote: »
    I have a Sprint iPhone 4S, so I don't have a dog in this fight, but I thought I read somewhere that Verizon's LTE uses an older standard that has a lower top-end speed & they did this because they launched their LTE network earlier.

    Also, this is really good news for Apple. These numbers include 'free' Android phones, but not 'free' iPhones since the free iPhone was the 3GS. Now that the 5 is out, the 4 is the free iPhone. This coming quarter will be the first one where Apple has a free phone to compete on the low end at Sprint & Verizon. I'll be very interested to see how the numbers look next quarter. I wouldn't be surprised to see Verizon sell more iPhones than Droids next quarter & for Apple to keep the lead after that.

    I've gotten speeds up to 40Mbps on VZW's LTE, so I doubt that's true.
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