“Verizon Communications Inc. posted a 30% decline in its third-quarter profit as rival AT&T Inc. and Apple Inc.’s iPhone took a bite out of its wireless growth,” Roger Cheng reports for Dow Jones Newswires.
“The New York telecommunications company has done an admirable job of keeping pace with AT&T, which has an exclusive deal to sell the iPhone, but finally faltered amid record sales of the Apple device, as well as heightened competitive pressure on the low end. The number of new contract customers fell by more than 50% from a year ago,” Cheng reports.
“Verizon’s third-quarter earnings, meanwhile, fell more than 30% to $1.18 billion, or 41 cents, from a year-earlier profit of $1.67 billion, or 59 cents a share,” Cheng reports. “Excluding charges, per-share earnings fell to 60 cents from 66 cents, but topped the average analyst estimate from Thomson Reuters of 59 cents a share. Revenue increased 10% to $27.27 billion, ahead of the Thomson Reuters estimate of $27.17 billion. Assuming Alltel, the regional wireless operator Verizon acquired in January was part of Verizon a year earlier, the increase would have been 0.6%.”
Cheng reports, “Pressure from low-end wireless providers offering cheaper plans without any contract commitments, as well as AT&T and the iPhone, have steadily cut into its business. Total wireless growth fell to 1.3 million from 2.1 million a year ago.”
Read more in the full article here.
MacDailyNews Take: Don’t worry, Verizon’s
LG Voyager, HTC Touch, BlackBerry Bold, Samsung Omnia, BlackBerry Storm, Moto Droid will staunch the bleeding.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]