Apple's iPhone Outsells All Android Phones Combined at Verizon
January 24, 2012 4:18 PM
comment(s) - last by
Verizon takes a loss, but grows customer base, solidifying its #1 spot
Maybe Sprint Nextel Corp.'s (
bold iPhone gamble
such a bad idea
after all. At a time when many predicted Apple, Inc. (
) to be fading in the smartphone race after
by Samsung Electronics Comp., Ltd.'s (
) slick Android handsets, Apple surged back with the
launch of the iPhone 4S
its iconic voice-controlled assistant, Siri
. Analyst numbers place Apple in a
near dead heat with Android
in December U.S. smartphone sales.
And the situation is looking even better for Apple based on the just-announced
of Verizon Wireless, the joint venture between Verizon Communications Inc. (
) and Vodafone Group Plc. (
For Verizon Wireless it was a lukewarm quarter as a pension charge and another one-time expense brought a net loss of $2.02B USD ($0.71 USD/share), versus the $1.48B USD profit ($0.52 USD/share) it would have recorded without these charges. The company did solidify its American lead, adding 1.2 million new contract subscribers (and 1.46m total new subscribers) bringing its total (contract and non-contract) customers to 108.7m and its contract customer base to 87.4m.
Smartphone sales rose from 39 percent in Q3 2011 to 44 percent in Q4 2011. And the iPhone was king at Verizon. Of the 7.7m smartphones sold by the carrier in Q4 2011, 4.3m (~55%) were iPhones. Again, take that figure in -- the iPhone outsold all Android phones
on America's largest carrier.
The iPhone remains a top draw at Verizon. [Image Source: Reuters]
Of course Verizon pays more for iPhones that the initial carrier AT&T, Inc. (
) did. And Sprint is reportedly paying even more -- so maybe it isn't such a good deal, after all.
It's certainly a good deal for Apple, though, who reportedly pulled in almost $600 USD per Verizon iPhone sold, on models that retail for $200 USD with contract. Verizon is doing its best to recoup this capital expenditure, with a slew of overage fees. Reportedly the average iPhone bill on Verizon was around $100 USD with all the taxes and fees added [
]. Verizon likely pockets $80 of this, meaning that it will haul in $1,920 over the duration of a contract. But it has to deal with the significant costs of network upgrades, power use, land use, employee pay, and more.
Some analysts are convinced that a net profit on an iPhone may be a fatalistic quixotic fantasy. Sanford Bernstein analyst Craig Moffett
Verizon is following in the line of AT&T in deluding itself that it will someday see a profit, but consistently failing to do so. He writes, "The earnings pop will always be a year away."
Still, if America's third and fourth largest carriers -- Sprint and Deutsche Telekom AG's (
) T-Mobile USA -- collapse under
their respective debt
, Verizon and AT&T could soon be able to significantly unilaterally increase contract rates, solving both companies' iPhone profitability dilemma.
The collapse of T-Mobile and Sprint -- a possible scenario -- may hold the key to AT&T and Verizon finally profiting off of their expensive iPhone commitments. [Source: T-Mobile]
Apple is also extremely well positioned under such a scenario, given that it's the top selling model at Verizon and likely near the top at AT&T, as well. The first major test for Apple, though, will be how it responds to the inevitable need to reinvent iOS. On the one hand it can't sit still as Google Inc. (
) unveils its slick latest Android build,
Android 4.0 "Ice Cream Sandwich"
. On the other hand, Apple must tread the fine line of avoiding alienating its largely non-technophile customer base with too gaudy an interface.
Android 4.0 "Ice Cream Sandwich" [Image Source: Google]
For now, though, Apple and its fans can simply savor the thrill of being back near the top of the U.S. smartphone market -- even if challenges await.
This article is over a month old, voting and posting comments is disabled
RE: So losing money is a good thing? ..... They must be doing shrooms
1/26/2012 7:29:06 AM
I think you are exactly right.
The main reason for Apples success is that the iPhone 4S moved up the hardware standard to a new level, and no Android handset has matched it yet, it's the failure of all the other manufacturers just as much as it is the success of Apple.
The SGX 540 in the Nexus Prime is 2 years old, and 3x slower than the SGX 543 in the iPhone 4S, so even the Nexus Prime is a slower phone with worse battery life (and of course the issues all Android phones have). It also only has a 5 megapixel camera compared to the higher quality 8 megapixel camera in the iPhone 4S. There simply is no better alternative right now.
Lets see what 2012 brings :-)
"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home
A Cupertino Comeback: Apple and Android are Almost Tied in U.S. Sales
January 18, 2012, 1:07 PM
Analysts Expect Blowout Quarter for Samsung, Smartphone Sales of 35 Million
January 4, 2012, 8:01 PM
Sprint: We Need a $7B USD Loan for the iPhone
October 27, 2011, 10:49 AM
Sprint Records Net Loss, But Adds 1.3 Million Subscribers
October 26, 2011, 12:30 PM
Android 4.0 "Ice Cream Sandwich" Airs
October 19, 2011, 9:01 AM
Microsoft "Hopes" Developers Will Make Xbox One Games Unplayable Offline
May 24, 2013, 12:13 PM
Federal Judge Sides with U.S. DOJ in Apple E-Books Preliminary Hearing
May 24, 2013, 11:46 AM
HTC Considers "Senseless" One Smartphone
May 24, 2013, 8:00 AM
HTC One Hits 5 Million Sales in First Month, Despite Issues
May 23, 2013, 4:04 PM
HTC First's Arrival in UK Canceled, Facebook Assesses "Home" Feedback
May 23, 2013, 3:02 PM
Microsoft Expands Windows Azure in Asia, Mocks iPad in New Commercial
May 23, 2013, 12:06 PM
Most Popular Articles
High School Student Creates Storage Device that Can Charge in 20 Seconds
May 20, 2013, 6:51 AM
Apples Tries to Use Decade-Old Patents to Ban Samsung Galaxy S IV
May 22, 2013, 3:00 PM
NASA Awards $125,000 Grant for 3D Printed Food on Long-Term Space Travels
May 21, 2013, 1:32 PM
Microsoft Announces Voice-Controlled "Xbox One"
May 21, 2013, 12:55 AM
Seawater Cooling Saves Data Center Big Bucks, Energy, Despite Jellyfish Issues
May 17, 2013, 3:23 PM
Latest Blog Posts
Lumosity: Does it Work?
May 22, 2013, 8:20 PM
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information