Verizon’s fourth quarter earnings miss ahead of Apple iPhone

Verizon iPhone 4“Verizon slipped in the fourth quarter missing analysts’ targets as wireless subscriber growth cooled ahead of the Apple iPhone next month,” Scott Moritz reports for TheStreet.

“With so much attention focused on the upcoming CDMA iPhone, wireless growth was muted in the fourth quarter,” Moritz reports. “Verizon added 872,000 new retail postpaid customers in the quarter, down from the 1 million new customers it added in the third quarter.”

Moritz reports, “The Verizon iPhone sales launch Feb.10.”

Full article here.

The Silicon Valley / San Jose Business Journal reports, “Revenue at Verizon fell 2.6 percent to $26.4 billion, right on the target projected by analysts. Net income was $2.64 billion, or 93 cents a share, compared with $617 million, or 22 cents last year.”

“The company is expected to take a hit of between $3 billion and $5 billion in the first year that it sells the iPhone, due to an estimated $400 subsidy it will give buyers of the Apple device,” The Silicon Valley / San Jose Business Journal reports. “It has said it will charge $199 for the 16GB version and $299 for the 32GB version, both with a mandatory two-year service plan.”

Full article here.

MacDailyNews Take: Verizon’s pretend iPhone market is slowing.


  1. Meanwhile, Verizon has eliminated the cheapest data plan for smartphones. If you buy an iPhone from them, you are now forced to buy all-you-can-eat plan ($30 per month), even though your usage may have been within the 150MB allowance for the $15 per month plan.

    According to some research (as well as AT&T’s statements), vast majority of iPhone owners were using less than 200MB (AT&T’s allowance for $15 per month). With WiFi so prevalent, it is not surprising that people found out how little 3G data they were actually using. With Verizon, that won’t help them, as they will have to pay for the full, unlimited plan.

  2. Totally with you guys who are slamming The Street. I lump the Motley Fool right up there with them..

    I may be being a bit dim, but what does the MDN take mean:

    “Verizon’s pretend iPhone market is slowing.” Uh?

  3. Macaday,

    Verizon’s big profits and growth last year was due to the Droid, which is, according to MDN (and many others) a ‘pretend’ iPhone. With the iPhone rumour making rounds for the good part of last quarter, sales of the ‘pretend iPhone’ apparently slowed down a bit, in anticipation of the arrival of the ‘real thing’.

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