Verizon iPhone Sales Double over Last Quarter

January 6, 2012, By Sanjeev Ramachandran

If you don’t have an iPhone, well you don’t have an iPhone. It holds as true for carriers as it does for the customers.

iPhone is more like a lucky charm which does its job for the carriers; improving sales, adding more to the customer base and what not. Now, Verizon says it has sold twice the number of iPhones in the fourth quarter as compared to the previous one.

The company’s wireless unit sold 4.2 million iPhones in the fourth quarter, Chief Financial Officer Fran Shammo said during an investor conference. Of course, the iPhone 4S should be credited for propelling the sales to such high numbers.

Apple had a dry period prior to the arrival of the iPhone 4S, because people were apparently putting off buying the Apple smartphone until a new device arrived. Verizon considers the sales as an important tool for convincing basic phone users to upgrade to a smartphone and a pricier data plan.

The carrier sold 11 million units of the iPhone this year, the number includes the fourth quarter figure, numbers from the rest of the year plus the backlog of iPhone orders which, according to Verizon, stood at 120,000 units. Verizon boasts the sales figures, so it does take a margin hit.

The more iPhones it sells the larger hit it takes on the upfront subsidy it must pay to Apple to keep the phone at $199. Shammo said the iPhone would cut gross margins by 500 to 600 basis points.

No problems there, as long as it leads to customers who pay more and stay with the service longer.

© 2008-2012 - All rights reserved | Privacy Policy