Apple's iPhone accounted for 4M of Verizon's 7.2M total Q1 smartphones

Posted:
in iPhone edited January 2014
With 7.2 million total smartphones activated in Verizon's first fiscal quarter, the iPhone accounted for more than half, with 4 million total Apple handsets activated in the three-month span.

Verizon


In a conference call revealing its quarterly earnings on Thursday, Verizon revealed that roughly half of the 4 million iPhone units activated were 4G LTE devices. Since the iPhone 5 is the only 4G LTE capable phone from Apple, that means Verizon activated about 2 million iPhone 5 units.

Apple's 55 percent share of Verizon smartphones in the quarter was down from the nearly two-thirds of activations the iPhone took during the previous holiday quarter. The drop is no surprise, though, as the previous quarter included the much-hyped launch of the iPhone 5, as well as corresponding price cuts for the legacy iPhone 4S and iPhone 4.

But the iPhone 5's share of total iPhone activations at Verizon remained unchanged, representing about half of all Apple smartphones at the nation's largest carrier. In the holiday quarter, Verizon activated 9.8 million total smartphones, with 6.2 million of those iPhones, and about 3.1 million the iPhone 5.

The latest data from Verizon shows that although there is growing concern that Apple could be losing steam in the face of rivals such as Samsung, the iPhone still accounts for more than half of all smartphone sales in the U.S. at the two largest major carrier partners. Last quarter, the iPhone represented 84 percent of all smartphone activations at AT&T.

For the quarter, Verizon reported earnings of 68 cents per share on revenue of $29.4 billion, representing 15 percent year over year growth. Of the 7.2 million smartphones activated in the quarter, 5.9 million of those were 4G LTE devices.

"Verizon is off to an excellent start in 2013,? said Lowell McAdam, Verizon chairman and CEO. "Our strategic investments in wireless, wireline and global networks have given us the platforms to sustain momentum and take advantage of growth opportunities in key markets for broadband, video and cloud services. With ongoing improvements in operating efficiency, we expect continued growth in free cash flow and earnings as we move through the year."
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Comments

  • Reply 1 of 45
    irelandireland Posts: 17,294member


    More good news. The shares should hit 300 soon.

  • Reply 2 of 45
    hill60hill60 Posts: 6,989member


    So 4 million of 7.2 million couldn't give two hoots about a giant sized screen.


     


    Another dose of reality for the losers who keep promoting the "big screen" fallacy.

  • Reply 3 of 45
    solipsismxsolipsismx Posts: 19,566member
    hill60 wrote: »
    So 4 million of 7.2 million couldn't give two hoots about a giant sized screen.

    Another dose of reality for the losers who keep promoting the "big screen" fallacy.

    It's likely most of those remaining 3.2 million couldn't care about a 5" display either.
  • Reply 4 of 45
    genovellegenovelle Posts: 714member
    I think its really amazing that Apple commands over half of their smartphone sales. Considering every promotion and advertisement they do is for Apples Competitors. If you go to their website, there is no indication they even carry the iPhone at all. They promote android phones and even Windows Phones but no Apples. They have a most popular section on their main page they has the Samsung S3 and a bunch of other android and windows phones but the iPhone that sold 55% of their smartphone total is nowhere to be found. If you go to smart phones and scroll down to near the bottom you will find it after Droid, Motorola, LG, and Windows Phones. LOL!!!
  • Reply 5 of 45

    Quote:

    Originally Posted by Ireland View Post


    More good news. The shares should hit 300 soon.



    I think the investors are more concerned about the Iphone sales outside the U.S. .

  • Reply 6 of 45
    herbapouherbapou Posts: 2,201member


    Thats a 35% Q2Q decline. Last year Verizon sold 3.2 million iphones in the quarter, so it’s a 25% yoy increase. BUT they also sold more Smartphone’s than last year so the iphone yoy increase is to take in a context where more Smartphone’s were sold.


     


    If we extrapolate the 35% Q2Q decline to Q1 total numbers we get 31 million iphones for Q2. Last year Apple sold 35 million iphones in Q2 2012, so this would be a 11% YoY decline.


     


    I think we will see YoY EPS decline next week, which is expected.  If we take into account the smartphone and tablet markets are growing, this means Apple is on the decline. This is not a surprise to me giving the fact that iOS is lagging in innovation and that the iphone and ipad no longer have an edge over competition.

  • Reply 7 of 45
    kdarlingkdarling Posts: 1,640member


    Keep in mind when doing calculations, that activations include previously owned phones being passed down or sold.


     


    For AT&T, the used portion of activations has been anywhere from 10 - 20% in the past.  Haven't checked for Verizon.


     


    This is important to remember when later trying to correlate quarterly sales figures with activations, or when trying to figure out iPhone demand.

  • Reply 8 of 45
    herbapouherbapou Posts: 2,201member

    Quote:

    Originally Posted by SolipsismX View Post





    It's likely most of those remaining 3.2 million couldn't care about a 5" display either.


     


     


    I dont know about others but Apple has until october 2013 to come out with a bigger screen. At that date I need to change my phone and it will be a "phablet".

  • Reply 9 of 45
    solipsismxsolipsismx Posts: 19,566member
    kdarling wrote: »
    Keep in mind when doing calculations, that activations include previously owned phones being passed down or sold.

    For AT&T, the used portion of activations has been anywhere from 10 - 20% in the past.  Haven't checked for Verizon.

    This is important to remember when later trying to correlate quarterly sales figures with activations.

    1) No one is saying they are all iPhone 5's. This is all a measure of what is happening within a carrier and within Verizon more than 50% are going for a single vendor that Verizon goes out of their way to get you not to choose.

    2) Those AT&T numbers (assuming they are accurate0 are unlikely to hold for Verizon. The iPhone only arrived with CDMA and on Verizon in January 2011 so it's been scarcely been over 2 years. Even if we account for only 20 months that leaves a about a half year and only those that bought right away in 2011 that would even be eligible for doing an iPhone 4 hand me down or resale. I don't see how that would possibly account for much when AT&T has had the iPhone since July 2007.
  • Reply 10 of 45
    tbelltbell Posts: 3,146member

    Quote:

    Originally Posted by herbapou View Post


     


     


    I dont know about others but Apple has until october 2013 to come out with a bigger screen. At that date I need to change my phone and it will be a "phablet".



     


     


    I think you will be disappointed. Don't get me wrong, I think Apple will come up with a bigger screen phone, but it will not be until it releases the next redesign. APple will not ignore the reality that many people prefer larger screens. Many people seem to use the phone as a general computer replacement. 

  • Reply 11 of 45
    solipsismxsolipsismx Posts: 19,566member
    herbapou wrote: »

    I dont know about others but Apple has until october 2013 to come out with a bigger screen. At that date I need to change my phone and it will be a "phablet".

    I, personally, think it could happen. I have no such interest in a super large phone and really no interest in a phablet, but I can see how there would be a market for it.
  • Reply 12 of 45
    tbelltbell Posts: 3,146member

    Quote:

    Originally Posted by genovelle View Post



    I think its really amazing that Apple commands over half of their smartphone sales. Considering every promotion and advertisement they do is for Apples Competitors. If you go to their website, there is no indication they even carry the iPhone at all. They promote android phones and even Windows Phones but no Apples. They have a most popular section on their main page they has the Samsung S3 and a bunch of other android and windows phones but the iPhone that sold 55% of their smartphone total is nowhere to be found. If you go to smart phones and scroll down to near the bottom you will find it after Droid, Motorola, LG, and Windows Phones. LOL!!!


     


     


    I do as well. AT&T also seems to go out of its way to do the same. 

  • Reply 13 of 45
    gatorguygatorguy Posts: 18,900member


    Is there something wrong with the math here?


     


    Verizon activated 7.2 million smartphones in the quarter according to the article. AI says 4 million of those were iPhones, with roughly half being 4G iPhone 5's. Verizon also reportedly said according to AI that of the 7.2M smartphone activations 5.9M were 4G LTE phones. That only leaves 1.3M total non-4G phones activated during the quarter across all OS's, Android, Blackberry MS and iOS. Yet the AI article surmises that 2 million older 3G iPhones alone were sold which wouldn't be possible (half of the 4 million iPhones activated).


     


    Something doesn't add up unless I've misunderstood.

  • Reply 14 of 45
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by Gatorguy View Post


    Is there something wrong with the math here?


     


    Verizon activated 7.2 million smartphones in the quarter according to the article. 4 million of those were iPhones, with AI saying roughly half being 4G iPhone 5's. Verizon also reportedly said according to AI that of the 7.2M activated 5.9M were 4G LTE phones. That only leaves 1.3M total non-4G phones activated during the quarter across all OS's, Android, Blackberry MS and iOS. Yet the AI article surmises that 2 million older 3G iPhones alone were sold which wouldn't be possible (half of the 4 million iPhones activated).


     


    Something doesn't add up unless I've misunderstood.



     


    There is no such thing as 3G anymore. That has been rebranded as 4G (vs 4G LTE). The numbers still don't add up.

  • Reply 15 of 45
    gatorguygatorguy Posts: 18,900member

    Quote:

    Originally Posted by igriv View Post


     


    There is no such thing as 3G anymore. That has been rebranded as 4G (vs 4G LTE). The numbers still don't add up.



    OOPS! Thanks for the clarification. You're right tho, the numbers still don't add up.


     


    Looking at it from another angle. There were 5.9 million 4G LTE activations last quarter and only 2M of those were iPhones . . .????


    Somethings not right.

  • Reply 16 of 45
    tallest skiltallest skil Posts: 43,338member


    Originally Posted by KDarling View Post

    Keep in mind when doing calculations, that activations include previously owned phones being passed down or sold.


     


    For AT&T, the used portion of activations has been anywhere from 10 - 20% in the past.  Haven't checked for Verizon.


     


    This is important to remember when later trying to correlate quarterly sales figures with activations, or when trying to figure out iPhone demand.



     


    Keep in mind there's only so much damage control you can try to shoehorn into an Apple website before you start grasping at completely pointless straws like this and looking like a moron.

  • Reply 17 of 45
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by Tallest Skil View Post


    Keep in mind there's only so much damage control you can try to shoehorn into an Apple website before you start grasping at completely pointless straws like this and looking like a moron.




     


    Activations vs sales applies to every type of phone, iOS, BB, Android, whatever, across the board. It gives no advantage to anyone.  It has nothing to do with any "damage control".  It has to do with helping people calculate. 


     


    Quote:


    Originally Posted by igriv View Post


    There is no such thing as 3G anymore. That has been rebranded as 4G (vs 4G LTE). The numbers still don't add up.



     


    Wait. What?  There's still 3G only devices.  Are you thinking of AT&T instead?


     


    Quote:

    Originally Posted by SolipsismX View Post





    1) No one is saying they are all iPhone 5's. This is all a measure of what is happening within a carrier and within Verizon more than 50% are going for a single vendor that Verizon goes out of their way to get you not to choose.


     


    You and TS are missing the point in your zealousness to find fault with me or to defend Apple.  Drop the chip from your shoulder and you might find some useful info here.


     


    The article makes it sound as if the iPhone 5 only makes up half of iPhone sales (2 million of 4 million activations).    In reality, there were less sales than activations, which means that the iPhone 5 sales were MORE THAN HALF of the actual sales.


     


    This is important to know, if you're trying to figure out the popularity of various iPhone models.

  • Reply 18 of 45
    nasseraenasserae Posts: 3,152member

    Quote:

    Originally Posted by Gatorguy View Post


    Is there something wrong with the math here?


     


    Verizon activated 7.2 million smartphones in the quarter according to the article. AI says 4 million of those were iPhones, with roughly half being 4G iPhone 5's. Verizon also reportedly said according to AI that of the 7.2M smartphone activations 5.9M were 4G LTE phones. That only leaves 1.3M total non-4G phones activated during the quarter across all OS's, Android, Blackberry MS and iOS. Yet the AI article surmises that 2 million older 3G iPhones alone were sold which wouldn't be possible (half of the 4 million iPhones activated).


     


    Something doesn't add up unless I've misunderstood.



    The 5.9M 4G LTE are devices (tablets, mobile hotspot.. etc) not smartphone only.

  • Reply 19 of 45
    sacto joesacto joe Posts: 621member
    herbapou wrote: »
    Thats a 35% Q2Q decline. Last year Verizon sold 3.2 million iphones in the quarter, so it’s a 25% yoy increase. BUT they also sold more Smartphone’s than last year so the iphone yoy increase is to take in a context where more Smartphone’s were sold.

    If we extrapolate the 35% Q2Q decline to Q1 total numbers we get 31 million iphones for Q2. Last year Apple sold 35 million iphones in Q2 2012, so this would be a 11% YoY decline.

    I think we will see YoY EPS decline next week, which is expected.  If we take into account the smartphone and tablet markets are growing, this means Apple is on the decline. This is not a surprise to me giving the fact that iOS is lagging in innovation and that the iphone and ipad no longer have an edge over competition.

    Laughable. The really important number isn't the totally predictable drop in Q to Q sales, but the unknown number sold for Chinese New Year. Nice try though, lttle troll....
  • Reply 20 of 45
    solipsismxsolipsismx Posts: 19,566member
    gatorguy wrote: »
    OOPS! Thanks for the clarification. You're right tho, the numbers still don't add up.

    Looking at it from another angle. There were 5.9 million 4G LTE activations last quarter and only 2M of those were iPhones . . .????
    Somethings not right.

    That's only for AT&T following T-Mobile's lead calling HSPA+ '4G', which is now acceptable as '4G' per the ITU-R. There is no reclassification, as far a I know, that EV-DO Rev.1 (or 2) to be called '4G'. I agree that there is something that seems off with the numbers but I have no time to try to find it today.

    kdarling wrote: »
    You and TS are missing the point in your zealousness to find fault with me or to defend Apple.  Drop the chip from your shoulder and you might find some useful info here.

    The article makes it sound as if the iPhone 5 only makes up half of iPhone sales (2 million of 4 million activations).    In reality, there were less sales than activations, which means that the iPhone 5 sales were MORE THAN HALF of the actual sales.

    This is important to know, if you're trying to figure out the popularity of various iPhone models.

    Call me crazy, but i you have a specific rebuttal to the article you should quote that portion of the article and then reply to it instead of the sweeping generalization you previously made.
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