Apple has a lot riding on Verizon’s earnings tomorrow

“Verizon is due to report its Q1 earnings tomorrow, and while that is obviously a big deal to Verizon investors, this quarter Apple investors may also have a surprisingly large stake in what Verizon has to say,” Max Greve writes for Seeking Alpha. “Specifically, Verizon’s subscriber count may tell us something about the state of the iPhone, Apple’s most important product.”

“A strong subscriber outperformance suggests that iPhone subsidies still work, a weak one suggests that they’re losing their heft,” Greve writes. “But since Verizon also started offering unlimited data at the same time, one data point from Verizon won’t really be conclusive. What would make things even better would be if T-Mobile, which made no other major changes last quarter, also reported a strong net add. In point of fact Apple cares about all four carriers reports, including Sprint and AT&T which didn’t offer iPhone subsidies in first quarter.

“From Apple’s perspective, the best outcome in the coming weeks would be for Verizon and T-Mobile to both report strong, and Sprint and AT&T to underperform,” Greve writes. “The subsidized win and the others lose.”

Read more in the full article here.

MacDailyNews Take: Such an outcome would be even more proof that there is really only one maker of aspirational smartphones: Apple.

If it’s not an iPhone, it’s not an iPhone.

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Apple smashes Street; iPhone, Services, Mac and Apple Watch set all-time records – January 31, 2017

4 Comments

  1. Apple’s biggest question is whether users have finally “had enough” of cheaper smartphones that simply don’t get software updates and don’t last as long physically, such that those users then upgrade to Apple.

    I am seeing it in acquaintances, who no longer speak of Apple’s “closed garden.”

    1. I don’t think most consumers care about not getting timely updates. I believe they pay most attention to getting a less expensive smartphone even if they don’t last a long a time as a premium one. Many people only spend the amount they have in their pockets. Why do you think Wall Street is most concerned about market share percentage? It’s all about moving units. It has nothing to do with ease of use, product longevity or customer service. It’s just a simple understanding that the cheaper a product is, the more units will be sold.

      Do most Android smartphone users even realize they’re not getting updates? I doubt it very much. They probably don’t even want to be bothered with updates.

      Apple is only reaching a very small percentage of global users due to the higher pricing of iPhones. Accept that as a fact. If a person can’t reasonably afford a product, then they probably won’t get it. It doesn’t matter if iPhones are the best in the world, have great longevity and are trouble-free. Most people on this planet won’t be buying iPhones because they can’t afford to. Lack of subsidies of some type will only hinder iPhone sales.

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