“Apple (AAPL) has been languishing for almost a year now on doubts of growth and shrinking margins,” Malcolm Manness writes for The Motley Fool. “In particular, their most important product, the iPhone, has faced increased competition and this has fed the fear of investors. But new information from one of its partners counters these claims, and indicates that these fears are likely unfounded.”
In Verizon’s “conference call, Fran Shammo (EVP and CFO) stated: ‘Smartphone activations totaled 7.5 million and 72% of them were 4G LTE. The smartphone mix was fairly balanced; roughly 51% of the activations were iPhones,'” Manness reports. “This totals over 3.8 million iPhones. CNN Money notes that this is a 44% increase over a year ago, 32% increase over last quarter.”
Manness writes, “This bodes well for Apple as the electronics maker received about 53% of revenue from the iPhone last quarter, and there has been speculation that sales would be flat this time around. The news from Verizon suggests that the pessimism of the last few months may have been unwarranted. A spike in iPhone sales, and renewed growth if coupled with a stabilized gross margin, would likely kick start a revival in share price.”
Read more in the full article here.
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