iPhone Represents 55% of Verizon's 4Q 2011 Smartphone Sales

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Apr 12, 2001
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Earlier this month, Verizon Wireless Chief Financial Officer Fran Shammo noted that the carrier had activated 4.2 million iPhones during the fourth quarter of 2011, more than doubling the previous quarter's sales on the momentum of the iPhone 4S launch and potentially signaling a blockbuster quarter for Apple in the iPhone market.

Verizon today officially announced its earnings for the fourth quarter of 2011, revealing in a conference call that the company actually activated 4.3 million iPhones during the quarter. With the carrier reporting total smartphone sales of 7.7 million units, the iPhone represented approximately 55% of the carrier's smartphone sales for the quarter.




Verizon wireless profit margins and net growth in retail customers
Smartphones now account for 44% of Verizon's postpaid customer phone base, up from 39% in the previous quarter. That strong growth in smartphones such as the iPhone significantly reduced the carrier's margins in its wireless business during the quarter as absorbed the heavy upfront subsidies paid to manufacturers for the devices. Verizon will recover those costs over the length of customers' contracts, making carriers willing to take short term hits to profitability to lock in smartphone customers on lucrative service contracts.

Article Link: iPhone Represents 55% of Verizon's 4Q 2011 Smartphone Sales
 

voonyx

macrumors 6502a
Jul 19, 2011
842
0
Yeah it outsold all the 4G devices combined by almost double. The beginning of the end for Apple is imminent.
 

ArchaicRevival

macrumors regular
Jan 16, 2011
245
0
Bucketheadland
I steered as many people away from Android as I possibly could at my Verizon store! Especially towards the affordable iPhone 4 in 8 GB, since it tops any 4G LTE phone that Verizon has at that price range.
 

bacaramac

macrumors 65816
Dec 29, 2007
1,412
77
It seems that Android is not growing as fast as I originally thought. Am I missing something here? Doesn't Verizon have a ton of Android phones? Good news for Apple I guess.
 

dashiel

macrumors 6502a
Nov 12, 2003
876
0
I don’t think it’s a coincidence the original Droid, the first Android phone to not be a complete joke, came out two years ago in October. Yes the iPhone 4S is a big deal, but the fact eager smart phone customers who didn’t have a choice 2 years ago now do is contributing to the uptick in iOS adoption.

I also think there’s an iPad halo effect going on. With Android tablets still being woefully inadequate I see a percentage of the Android using population who have iPads, love them and want to match that experience on their phone when their contract ends.

Android has had a good run, it’s nice to have a competitor and it will continue to grow, probably retaining their lead in overall market share, but iOS’ biggest hinderance to growth (limited carrier choice) is basically over. Android’s only indisputable competitive advantage is gone.
 

voonyx

macrumors 6502a
Jul 19, 2011
842
0
It seems that Android is not growing as fast as I originally thought. Am I missing something here? Doesn't Verizon have a ton of Android phones? Good news for Apple I guess.
Yeah Verizon has 10 LTE phones as of today, and they sold 2.3 million in the 4th Quarter. Verizon sold 4.2M iPhones. For all the craziness android fanatics said about LTE, it seems no one really cares.
 

Spoony

macrumors regular
Feb 14, 2011
146
0
Androids massive growth is from cheap Huwaii type companies overseas and on T Mobile in America.

Verizon and ATT are iphone strong holds. That's not where the growth is coming from in Android.

Premium Android vs iPhone, iPhone whoops Android across the board in sales just like with PCs. Apple sells like 90% of PC's over $1K.
 

bossxii

macrumors 68000
Nov 9, 2008
1,753
0
Kansas City
No huge surprise here. Android sales were strong because that is all the others carriers offered. Now that Verizon, Sprint as well as numerous carriers around the world, not to mention some of China's largest carriers now offer the iPhone the numbers will steadily change. The only people that care if you can root or do custom mods on a smartphone are the techies and nerds, the other 98% of the population wants easy and reliable. This clearly shows that to be true and 2012 will show that trend even more so.
 

chrmjenkins

macrumors 603
Oct 29, 2007
5,322
154
CA
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A405 Safari/7534.48.3)

The true test of apple versus android will be Verizon 3Q 2012 results. How well does the iPhone sell when a new version is on the horizon?
 

cvaldes

macrumors 68040
Dec 14, 2006
3,237
0
somewhere else
It seems that Android is not growing as fast as I originally thought. Am I missing something here? Doesn't Verizon have a ton of Android phones? Good news for Apple I guess.
Most of the Android growth is driven by cheap handsets in Asian markets: companies like Huawei, ZTC, Pantech.
 

Small White Car

macrumors G4
Aug 29, 2006
10,899
1,125
Washington DC
I know quite a few Verizon fans who stuck with Verizon all these years. They've spent years buying Android phones and carrying around an iPod Touch at the same time. Now each and every one of them has an iPhone 4S instead.

I wonder how many of those people there are.
 

notabadname

macrumors 65816
Jan 4, 2010
1,327
355
Detroit Suburbs
OMG but it has no turn-by-turn GPS!!!:eek:

Or something.
Proof that many people can pass on the "included" turn-by-turn to get an App store in which there are numerous affordable Nav options among the over half million Apps. I'll take seemingly countless, and affordable, options over free any day.
 

Ryth

macrumors 68000
Apr 21, 2011
1,565
119
This is what happens when Apple enters your sandbox.

Just wait till the next iPhone comes out...Armageddon is coming for Droid.
 

malman89

macrumors 68000
May 29, 2011
1,651
6
Michigan
I don't know if it's too surprising. Apple kills it in the holiday sales, while top Android releases happen year round. I don't think there was anything extremely new and/or exciting released in the 4Q for VZW.
 

SKTHEPREZ

macrumors member
Jan 5, 2012
51
0
570, PA
Well what do you know...

A company that SWORE by the Droid, now sells more iPhone's than Droid, Windows, and Blackberry combined. :apple::apple:
 

cadillac1234

macrumors regular
Aug 20, 2010
144
0
Androids massive growth is from cheap Huwaii type companies overseas and on T Mobile in America.

Verizon and ATT are iphone strong holds. That's not where the growth is coming from in Android.

Premium Android vs iPhone, iPhone whoops Android across the board in sales just like with PCs. Apple sells like 90% of PC's over $1K.
That doesn't seem to hold true in Western Europe. The iPhone to Android ratio is at least 5:1
 

Michael Scrip

macrumors 603
Mar 4, 2011
5,390
4,029
NC
Or: if turn-by-turn was a deciding factor in purchasing and Apple did have it, I wonder what the Verizon numbers would have been like? (60%?)
I hear things like this from former Android owners who now have iPhones:

"Where's my GPS app?"

"I have to pay for Angry Birds?"

It's tough to explain...