In the 2011 calendar fourth quarter, Verizon’s “wireless revenue rose 13 percent to $18.3 billion, led by a 19 percent increase in data sales,” Scott Moritz reports for Bloomberg.
“The strategy of subsidizing smartphones helped Verizon add 1.2 million subscribers on monthly contracts,” Moritz reports. “While iPhone sales more than doubled from the third quarter to 4.3 million units, total smartphone sales fell short, signaling waning demand for handsets that run on Google Inc.’s Android operating system, said Walt Piecyk, an analyst with BTIG LLC in New York.”
“‘The average smartphone customer will spend about $2,000 over the two-year contract, if the subsidy is $400, you’re still getting $1,600, and that’s very cash-flow positive,’ James Ratcliffe, an analyst at Barclays Capital in New York said,” Moritz reports. “Verizon and rivals such as AT&T Inc. sell the Apple Inc. iPhone and other smartphones at a loss as they compete to get customers to sign up for contracts that typically run for two years.”
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MacDailyNews Take: Siri, what did we say about Android back on March 09, 2010?
You said: “Google’s going to rue the day they got greedy by deciding to try to work against Apple instead of with them.”