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View Full Version : iPhone Activations Rise 25% at Verizon, Account for 55% of New Smartphones




MacRumors
Apr 18, 2013, 09:53 AM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2013/04/18/iphone-activations-rise-25-at-verizon-account-for-55-of-new-smartphones/)


http://images.macrumors.com/article-new/2013/04/verizon_logo_500-250x150.jpgVerizon today became the first major U.S. carrier to report financial results (http://www22.verizon.com/investor/app_resources/htmls/news_verizon_posts_strong_earnings_growth_in_1q_2013_04182013.htm) for the first quarter of 2013, and with Apple's earnings not being released until next week (http://www.macrumors.com/2013/04/02/apple-to-announce-q2-2013-earnings-on-april-23/), Verizon's numbers offer the first look at how Apple's quarter might turn out.

Verizon reported activations of 7.2 million smartphones during the quarter, and TechCrunch notes (http://techcrunch.com/2013/04/18/verizon-activated-4m-iphones-in-q1-2013-50-iphone-5-and-50-older-devices/) that on the company's conference call the carrier revealed that 4 million of those were iPhones, which corresponds to 55% of total smartphone activations. Verizon also noted that the iPhone 5 accounted for roughly half of iPhone activations on the carrier, with the iPhone 4S and 4 accounting for the remaining half.

Verizon's overall iPhone numbers are down from 6.2 million iPhones (http://www.macrumors.com/2013/01/22/verizon-activates-6-2-million-iphones-in-4q-2012-nearly-two-thirds-of-total-smartphone-activations/) representing nearly two-thirds of Verizon activations last quarter, but the fourth quarter of 2012 was the launch quarter for the iPhone 5, skewing the company's numbers.

A more relevant comparison comes from the first quarter of 2012, which saw Verizon activate 3.2 million iPhones (http://www.macrumors.com/2012/04/19/iphone-again-represents-over-half-of-verizons-smartphone-sales-in-1q-2012/) for just over half of the carrier's total smartphone activations in a quarter when Apple shipped 35.1 million iPhones worldwide (http://www.macrumors.com/2012/04/24/apple-reports-results-for-q2-2012-11-6-billion-profit-on-39-2-billion-in-revenue/). Those numbers show that iPhone activations on Verizon rose 25% year-over-year and are giving Wall Street analysts optimism that Apple may meet their overall targets for the quarter, which are generally in the 35-37 million range.

Article Link: iPhone Activations Rise 25% at Verizon, Account for 55% of New Smartphones (http://www.macrumors.com/2013/04/18/iphone-activations-rise-25-at-verizon-account-for-55-of-new-smartphones/)



camnchar
Apr 18, 2013, 09:58 AM
Is it safe to say that iPhone is winning in the US but losing worldwide?

Mad Mac Maniac
Apr 18, 2013, 09:58 AM
Apple is doomed!!!!!

winston1236
Apr 18, 2013, 10:02 AM
Wow only half of new activations are for the 5. Thats a bad sign.

UnfetteredMind
Apr 18, 2013, 10:02 AM
This can't possibly be true. It appears to be good news.

BC2009
Apr 18, 2013, 10:04 AM
As I have said elsewhere: I thought the analysts told me that Apple ceased ordering components for all their products? They must be making these iPhones with fairy dust.

UPDATE: Here is a little perspective:

2011Q3: Verizon sold 5.6M smartphones -- 2M iPhones / 3.6M Android
2012Q3: Verizon sold 6.8M smartphones -- 3.1M iPhones / 3.7M Android
Q3 YEAR OVER YEAR CHANGE: iPhone +55% / Android +4%

2011Q4: Verizon sold 7.7M smartphones -- 4.3M iPhones / 3.4M Android
2012Q4: Verizon sold 9.8M smartphones -- 6.2M iPhones / 3.6M Android
Q4 YEAR OVER YEAR CHANGE: iPhone + 44% / Android +6%

2012Q1: Verizon sold 6.3M smartphones -- 3.2M iPhone / 3.1M Android
2013Q1: Verizon sold 7.2M snartphones -- 4M iPhones / 2.9M Android / 0.3M Other
Q1 YEAR OVER YEAR CHANGE: iPhone + 25% / Android -3%

QCassidy352
Apr 18, 2013, 10:10 AM
Wow only half of new activations are for the 5. Thats a bad sign.

Why?

Popeye206
Apr 18, 2013, 10:10 AM
And the stock plummets! :(

likemyorbs
Apr 18, 2013, 10:11 AM
Let me rub this is my sister's face. She works at Verizon and is a total android fangirl.

Rogifan
Apr 18, 2013, 10:15 AM
Wow only half of new activations are for the 5. Thats a bad sign.

Same as it was last quarter. How does this fit into the narrative that Apple is doomed because they don't have an iPhone with a 4.5-5" screen size? Or is that only doom outside the USA, and the USA doesn't care about large screen phones? Or does price trump screen size? Or maybe people are looking at the iPhone 4 and thinking its a pretty damn good phone for free on contract?

murdoc158
Apr 18, 2013, 10:15 AM
Wow only half of new activations are for the 5. Thats a bad sign.

Maybe the Verizon users going with the iPhone 4S don't want to give up their grandfathered unlimited data. Activating the iPhone 5 requires you activate LTE on your contract, which will then force you into a tiered data plan unless you pay the full, unsubstidized price of the iPhone 5.

My wife is paying $75/month for the lowest voice plan, 250 texts, and unlimited data. She would be forced to pay at least $85/month for the same voice plan, 250 texts, and 2GB of LTE data with the iPhone 5. We are trying to lower our monthly payments, not increase them. ;)

obiegrad
Apr 18, 2013, 10:24 AM
Maybe the Verizon users going with the iPhone 4S don't want to give up their grandfathered unlimited data. Activating the iPhone 5 requires you activate LTE on your contract, which will then force you into a tiered data plan unless you pay the full, unsubstidized price of the iPhone 5.

Verizon will force you off unlimited whether you upgrade to a 3G or LTE device. However, it may be that heavy users are holding off upgrading because they don't want to give up unlimited data. The people upgrading now may be less heavy users and therefore OK with a 4 and 4S. The Share Everything plans may be playing a role too, adding a smart phone is only $10 more than a feature phone, so if you are already on a Share Everything plan, getting a free smart phone might be attractive for a low data usage user.

spazzcat
Apr 18, 2013, 10:32 AM
Wow only half of new activations are for the 5. Thats a bad sign.

Not everyone wants bigger phone?

RoastingPig
Apr 18, 2013, 10:52 AM
well when one rises the prices the others will follow

dugbug
Apr 18, 2013, 10:56 AM
Not everyone wants bigger phone?

My wife would love an iphone 5 mini (i.e. same size as the 4s)

BaldiMac
Apr 18, 2013, 11:11 AM
Wow only half of new activations are for the 5. Thats a bad sign.

Not at all. Same as last quarter. And Cook said the were seeing the same product mix as last year. ASP also remained the same compared to last year.

adnbek
Apr 18, 2013, 11:15 AM
Apple is doomed. :rolleyes:

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Wow only half of new activations are for the 5. Thats a bad sign.

Oh brother...

ArtOfWarfare
Apr 18, 2013, 11:15 AM
iPhones rose 25% Yr/Yr at Verizon, so if they did the same thing worldwide, that would mean they would rise from last year's 35.1 M to 43.9 M for the same quarter this year, well beyond the 35-37 M the analysts are expecting.

Rogifan
Apr 18, 2013, 11:19 AM
I know several people who haven't upgraded because they don't want to lose their unlimited data.

goodcow
Apr 18, 2013, 11:35 AM
I know several people who haven't upgraded because they don't want to lose their unlimited data.

Then they should just buy a used phone, or buy the phone at full retail.

Even at full retail it's cheaper than the garbage share everything plans, at least on a single line.

1GB is $50 for share everything. The old unlimited plan was $30 a month. If you take the $450 iPhone subsidy and break it down over a 24-month period, that's $18.75 a month.

$30 + $18.75 is $48.75 per month to keep unlimited, paid out over two years, which is cheaper than the new plans.

newagemac
Apr 18, 2013, 11:41 AM
Is it safe to say that iPhone is winning in the US but losing worldwide?

With the iPhone accounting for 80% of profits for the entire mobile phone industry (both smartphone and dumb phone), it's safe to say the iPhone is winning period.

SockRolid
Apr 18, 2013, 12:00 PM
... the carrier revealed that 4 million of those were iPhones, which corresponds to 55% of total smartphone activations.

Winning.

alleyhunter
Apr 18, 2013, 12:41 PM
http://money.cnn.com/2013/04/18/technology/mobile/verizon-iphone/

UnfetteredMind
Apr 18, 2013, 01:09 PM
This can't possibly be true. It appears to be good news.

Ah, see? I knew I had it wrong: http://money.cnn.com/2013/04/18/technology/mobile/verizon-iphone/

EDIT: LOL, I see alleyhunter pipped me on this tidbit.

sundog925
Apr 18, 2013, 01:16 PM
I love how people were so critical of buying the device at retail when it launched to keep unlimited data just 7 months ago, and now that T-Mobile is doing almost the same thing, its "revolutionary". LOL, riiiiiiiight.

tjl3
Apr 18, 2013, 01:16 PM
Ah, see? I knew I had it wrong: http://money.cnn.com/2013/04/18/technology/mobile/verizon-iphone/

EDIT: LOL, I see alleyhunter pipped me on this tidbit.

Is to be expected after a quarter of record profits, since trends dictate a steep drop in Q2. It's even stated in the article: "That doesn't spell doom for the iPhone -- year-over-year, Verizon's iPhone activations grew by 25%."

BC2009
Apr 18, 2013, 02:24 PM
Is it safe to say that iPhone is winning in the US but losing worldwide?

I think they are gaining everywhere faster than the industry except in Europe. So it depends on how you define "losing". They certainly sold less than Android worldwide last quarter, but Apple has never been about pure market share. And by profit-share they are crushing everybody (worldwide and in the USA).

I would say that Apple is "gaining" worldwide as they have been for years and that Apple is "leading" in the USA.

Michael Scrip
Apr 18, 2013, 03:11 PM
Is it safe to say that iPhone is winning in the US but losing worldwide?

It depends on what you mean by "winning"

In the US... land of subsidies... a top-of-the-line smartphone is $200 with contract. The phones don't really have to compete on price. You can walk out with a flagship phone and it only cost you $200.

Elsewhere in the world... where you have to buy a phone outright... it's a much different story.

India has over a billion people... and you can get an Android phone there for under $100 while an iPhone starts at $500. India is also a country where about 800 million people live on less than $2 a day... which explains why most people aren't racing to buy any $500 phones.

If you only have $100 to spend on a smartphone... you're gonna get an Android phone. It's only when you have at least $500 that you start to have a choice between Android and the iPhone.

And this is true in all countries that don't provide subsidies. It's no wonder why Android is the top seller.

Velli
Apr 19, 2013, 02:29 AM
This is why I don't own stocks of any kind. I just don't get it. Cirrus Logic puts out news that point to weak Apple sales, Wall Street: NOOOO, Apple is DOOOOMED, SELL, SELL, SELL, OMG OMG OMG! Verizon puts out news that point to strong Apple sales, Wall Street: Meh.

Seriously, even if Apple puts out a weak quarter, what is it Wall Street think is going to happen? They have a buttload of cash, and no debt. It's not like they'll go bankrupt overnight. They'll probably have earned at least another 10m$, yet Wall Street seem to think the company value should be drastically devaluated. I don't get it. Luckily, I have accepted that fact, otherwise I would have bought a bunch of shares at 500, which I at the time thought was ridiculously low...

HoopTrundler
Apr 19, 2013, 03:01 AM
I love how people were so critical of buying the device at retail when it launched to keep unlimited data just 7 months ago, and now that T-Mobile is doing almost the same thing, its "revolutionary". LOL, riiiiiiiight.

That's different... With T-Mobile, you're not paying the full price up front.

szw-mapple fan
Apr 19, 2013, 03:40 AM
Why?

He's being funny. Apple stocks drops whenever there's good news because their astronomical growth isn't enough for investors. It dropped below 400 for the first time in years yesterday and Apple is still doing great.

JosephAW
Apr 19, 2013, 07:24 AM
Why would people pay more money to get less service? I just switched from Verizon to Sprint because they wouldn't grandfather in my unlimited data with an upgrade. Results: Sprint is just as good or better and no throttling! No more toggling airplane mode to reset to surf the web.

zorinlynx
Apr 19, 2013, 11:49 AM
I'm surprised Verizon is getting so many customers when they are the MOST expensive option by far.

Is there any advantage to being on Verizon?

rdlink
Apr 19, 2013, 12:03 PM
Not everyone wants bigger phone?

I have an iPhone 5. If the 4S had the same tech inside of it as the 5 (Verizon LTE, faster processor, faster GPU) I would rather have it. I still think the 4 was the best looking, most durable iPhone ever made. My opinion.

----------

I'm surprised Verizon is getting so many customers when they are the MOST expensive option by far.

Is there any advantage to being on Verizon?

Much more saturated LTE nationwide.
Better coverage, nationwide.
Not AT&T

sundog925
Apr 19, 2013, 01:18 PM
That's different... With T-Mobile, you're not paying the full price up front.

put lipstick on a pig, its still a pig.

FightTheFuture
Apr 19, 2013, 01:30 PM
I have an iPhone 5. If the 4S had the same tech inside of it as the 5 (Verizon LTE, faster processor, faster GPU) I would rather have it. I still think the 4 was the best looking, most durable iPhone ever made. My opinion.[COLOR="#808080"]
My wife would love an iphone 5 mini (i.e. same size as the 4s)

I feel the same way. I own an iPhone 5, but the 4/4S was perfect for my running shorts and small enough to fit in any pair of jeans. It's also not a burden to pull out quickly when needed (the 5 kinda is). This might be the reason why half of the iPhones sold were the 4/4S model.

fr33 loader
Apr 19, 2013, 01:50 PM
I love how people were so critical of buying the device at retail when it launched to keep unlimited data just 7 months ago, and now that T-Mobile is doing almost the same thing, its "revolutionary". LOL, riiiiiiiight.

I think the difference is that, in T-Mobile, your monthly due is lower if you paid/bring your own device. If you do get a subsidized phone, your monthly bill will go down as soon as you've paid off your new phone. In Verizon, you pay the same high monthly bill regardless if you're on contract or not and even if you brought/paid off your own phone