Verizon admits that the majority of the smartphones it sold last quarter were 3G iPhones

Despite reports that Verizon’s fourth quarter earnings were hurt mainly by high subsidies for iPhone, Verizon announced on Tuesday it sold 4.3 million iPhones– over 50 percent of the 7.7 million total smartphones sold during the quarter. This statistic follows reports earlier this month that Verizon sold approximately 4.2 million iPhones during the holiday quarter. Compare that figure to the 1.6 million 4G LTE smartphones sold during the same quarter, of which the carrier offers more than 18 (mostly Android) devices versus a few iPhone models. These numbers show consumers are still choosing 3G iOS devices over the latest generation of 4G LTE smartphones from other vendors.

According to Barclays Capital analyst James Ratcliffe, even with the high subsidy, Verizon will see a positive cash flow of approximately $1,600 per iPhone. His estimate is based on the nearly $2,000 spent over a two-year contract and a $400 subsidy for the same period. Ratcliffe explained to Bloomberg:

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Verizon back-tracks, will not impose $2 single payment fee

Verizon Wireless has been under fire this week after announcing it would begin imposing a $2 fee on customers who do not have their bill set to be paid automatically, and instead pay it through electronic check. Today, the Federal Communications Commission announced they would begin investigating Verizon’s new fee. Shortly after, Verizon announced on its website that they will not impose the fee to meet with customer’s requests.

The company made the decision in response to customer feedback about the plan, which was designed to improve the efficiency of those transactions. The company continues to encourage customers to take advantage of the numerous simple and convenient payment methods it provides.

Verizon said this fee was going to help move customers to a more convenient payment method. Luckily, they have chosen to go the other way.
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Verizon sells two million iPhones in the September quarter

Carrier Verizon Wireless, a joint venture of U.S. telecommunications firm Verizon Communications and UK multinational mobile network operator Vodafone, today announced financial results for the September quarter. Big Red sold two million iPhone units which represents a 300,000 units decline compared to the June quarter. Verizon was also behind rival AT&T which yesterday reported activating 2.7 million iPhones in the quarter out of a total of 4.8 million total devices.

In a separate statement, rival AT&T said it activated a million units of the new iPhone 4S on its network as of Tuesday, while Verizon made no mention of iPhone 4S in its quarterly filing. iPhone 4S went on sale in the United States, UK, Australia, France, Germany, Canada and Japan on Friday, October 14. The phone will roll out to 22 new countries later this month, with regional online Apple Stores in those countries accepting reservations beginning today.

Verizon’s full press release is right after the break.

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Just like Verizon, T-Mobile sides with Samsung in Apple litigation

Just like Verizon, T-Mobile has chosen to side with Samsung in its fight against Apple reports Foss Patents. T-Mobile’s reason, in response to a preliminary injunction proposed by Apple, is that they don’t want key 4G devices to be banned for the holiday season. And since it doesn’t look like T-Mobile is getting the iPhone anytime soon, Samsung’s 4G phones could be a big part of their sales. Check out T-Mobile’s response below:

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Verizon sides with Samsung in Apple litigation. Why?

Here’s the story (via Daring Fireball). The short of it is that Verizon asks the court not to issue Apple’s requested injunction against Samsung products because an injunction “is not in the public interest… It significantly limits consumer options and crippling the free flow of goods to Verizon and its customers”.

The obvious response is what injunction wouldn’t?

The question is: why would Verizon throw its weight behind Samsung in this battle now that it has the iPhone?

Perhaps Verizon isn’t as happy with the iPhone and as they were in early 2011.

Notice the love start to peel away in the video below. Verizon CEO Lowell McAdam was expecting to have an iPhone 5 this summer and counts that as a reason for missing targets in the third quarter. Revenues overall are flat and Verizon isn’t seeing the LTE money they were hoping for. Samsung obviously sells a bunch of LTE phones and Tablets that Verizon wants to capitalize on (and has a lot invested in) including the Galaxy Tab 10.1, Droid Charge, and the Droid Nexus Prime due out later this year…

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Verizon CEO McAdam makes best/worst case yet for ‘AT&T-Mobile’ merger


Verizon Wireless CEO Lowell McAdam

At an investor conference yesterday, Verizon CEO Lowell McAdam made the simple argument:

I have taken the position that the AT&T merger with T-Mobile was kind of like gravity. It had to occur, because you had a company with a T-Mobile that had the spectrum but didn’t have the capital to build it out. AT&T needed the spectrum, they didn’t have it in order to take care of their customers, and so that match had to occur.

I don’t think that I’ve heard a rationale for the merger stated more succinctly.

But coming from AT&T and T-Mobile’s biggest rival, you know it is a bunch of horses**t.

Since when does a company CEO say something to the effect of “We want our competitors to be stronger and better equipped to compete with us and take our customers”?

The reason why Verizon is in favor of the deal is because it eliminates a low-cost player in the market and brings the U.S. closer to a telecom duopoly, in which AT&T and Verizon can set prices.  Just recently, Verizon was forced to offer a $50 pre-paid data plan that competes with Sprint’s Virgin and T-Mobile.  With Verizon/AT&T running the show, they won’t need to make moves like that.

It’s pretty obvious to anyone not on an AT&T or Verizon payroll (including fifteen members of Congress led by North Carolina’s Heath Shuler) that a merger would be horrific for wireless competition in this country.

No one with an eighth-grade education really believes that any merger, telecom or otherwise, has ever created jobs or competition in the marketplace which is what AT&T is somehow trying to argue. Hopefully this thing is killed. Soon.
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