So you are saying if Verizon gives Apple $12B and not even get a paper clip for it, this would keep Verizon's nose intact?
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Verizon Could Face Up to $14 Billion in Unsold iPhone Purchase Commitments for 2013
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So you are saying if Verizon gives Apple $12B and not even get a paper clip for it, this would keep Verizon's nose intact?
If Verizon was stupid enough to enter an agreement like that with Apple then then they should stop aggressively pushing Android phones in their stores.
You enter and they practically force one down your throat. If this agreement exists then their sales tactics are an example of one hand not knowing what the other hand is doing...
I watched a friend trying to replace their old iPhone 3GS with a new one deal with the pushy Verizon guy and when she asked for another iPhone 5, he practically shut down and went on and one about the Galaxy IV.
Verizon has the better service than my AT&T (in DC) so I don't blame her for wanting that service. AT&T thinks Washington, DC is a rural farm community or developing country based on the service they provide us: Go capital of the free world, lol...
Meanwhile, at AT&T, the sales guy was agnostic - the dude showed us a Galaxy IV, an HTC One, and the iPhone 5.
You enter and they practically force one down your throat. If this agreement exists then their sales tactics are an example of one hand not knowing what the other hand is doing...
I watched a friend trying to replace their old iPhone 3GS with a new one deal with the pushy Verizon guy and when she asked for another iPhone 5, he practically shut down and went on and one about the Galaxy IV.
Verizon has the better service than my AT&T (in DC) so I don't blame her for wanting that service. AT&T thinks Washington, DC is a rural farm community or developing country based on the service they provide us: Go capital of the free world, lol...
Meanwhile, at AT&T, the sales guy was agnostic - the dude showed us a Galaxy IV, an HTC One, and the iPhone 5.
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"Could keep plan prices lower". Yes, I'm sure any cost savings would be passed on to the consumer. This is from companies that want to force people into unlimited text plans or else charge 25 cents or more per text. Really?
Just notice that carriers that do not offer phone subsidies (outside USA and even T-Mobile here) have much lower plan prices. Do you really think that Verizon and AT&T are some special evil carriers?
Instead of tying up resources trying to build the iJitterbug cheaper iphone for idiots...
Go after Samsung.
5-6" screen.
And for the love of God, buy, and fully integrate Swype.
I'm tired of incoherent auto-retarded texts from every coworker with an iPhone.
End the tapping (nobody is precise enough).
Ring in the thumb ballet.
Go after Samsung.
5-6" screen.
And for the love of God, buy, and fully integrate Swype.
I'm tired of incoherent auto-retarded texts from every coworker with an iPhone.
End the tapping (nobody is precise enough).
Ring in the thumb ballet.
Absolutely (when you look at the big picture).
This indicates a severe shortfall in sales from expectations a year ago when the contract was written.
It is strange Verizon would be foolish enough to put themselves on the line for the success of a 3rd party device.
Apple under-delivered and now Verizon foots the bill. Now that Apple lost it's status as a premier device, there is no reason for carriers to make this mistake again.
It will go back up...a lot this drop was manipulation...and hedge funds and others ready to ride it back up.
Don't forget...look where GOOG was, then went and is back to and even higher. And they arent even close to being the company Apple is.
so this kinda puts a hole in Apple's sales claims then...if companies are committed to purchase (which will be counted) but fail to sell (which, presumably, isn't)
Yeah, it is almost unbelievable. Actually, I think it is unbelievable. As in, I do not believe the report is getting the facts right. There is just no way Verizon should expect that many sales in one year. That 38 million target just can't be right. They'd have to take huge market share from all the other carriers and even then they'd need the iPhone to basically be the only smartphone that folks buy.
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No that still counts if the carriers can't send the phones back. And it certainly sounds like they can't.
I'm pretty sure that every functioning iPhone that has been ever made and shipped out has sold to a customer. And that not a single iPhone has been shipped back to Apple with the carrier saying "I can't sell this thing. It is just collecting dust in my storeroom." A few might have sat around for a few months and then gotten their price knocked down. But eventually the phone sold.
I think basically all phones are selling these days. It might take a major price cut, but you can get them out the door eventually. Even the terrible HTC First which was such a flop it was killed immediately sold out when they dropped the price $100. Maybe some of the terrible Windows phones didn't sell. But you see them available for $50 off contract. So even that phone probably didn't round trip back to Microsoft.
Absolutely (when you look at the big picture).
This indicates a severe shortfall in sales from expectations a year ago when the contract was written.
It is strange Verizon would be foolish enough to put themselves on the line for the success of a 3rd party device.
Apple under-delivered and now Verizon foots the bill. Now that Apple lost it's status as a premier device, there is no reason for carriers to make this mistake again.
You're making a lot of assumption here. If iPhone 5 is such a dud how come we're not hearing of all these shortfalls at other carriers?
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No but this analysis sure seems inflated. As others have said, who in the world at Verizon would have signed up for having to sell 38M iPhones in one year? That number seems high. Of course doesn't stop the media and every tech site running with this story.
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But an A in trolling.
Who said anything about 600's? My point was if this is such bad news how come Apple's stock is up? It's up almost $7 today. Yeah, yeah I know the market overall is up today but many times when the market is up Apple is still down.
Alternate Theroy
As much as we may have greedy business folks (some people), companies are not entirely run by idiots.
To have such a large purchase commitment and to tell your employees to push alternate options, i.e. GS3 & GS4 does not past the smell test in my opinion.
I believe (and I say I) that Samsung in some way is covering the cost of that purchase commitment by sweetening the deal between them and Verizon.
There is no way these guys would take such a huge lose like that. Heads would role big time.
Just saying. Thoughts?
As much as we may have greedy business folks (some people), companies are not entirely run by idiots.
To have such a large purchase commitment and to tell your employees to push alternate options, i.e. GS3 & GS4 does not past the smell test in my opinion.
I believe (and I say I) that Samsung in some way is covering the cost of that purchase commitment by sweetening the deal between them and Verizon.
There is no way these guys would take such a huge lose like that. Heads would role big time.
Just saying. Thoughts?
Does Apple have buy back agreements with every carrier or just Verizon? And if they do how much has been bought back over 7 years?
they should have tried to improve their offers and services instead of wasting their money on this deal.
2 More Years???
With that inventory "problem" it just seems incredibly STUPID that Verizon is extending the user contracts to 2 FULL years instead of the 20 months it used to allow. They would be much smarter to allow a new phone each year and just let go of a little of their huge profit they like to steal from us
With that inventory "problem" it just seems incredibly STUPID that Verizon is extending the user contracts to 2 FULL years instead of the 20 months it used to allow. They would be much smarter to allow a new phone each year and just let go of a little of their huge profit they like to steal from us
Wow. People like you are a source of major income to professional traders. A story on MacRumors has NOTHING to do with today's stock price. Chances are most knowledgeable investors knew about this days/weeks before MacRumors posted it.
Wow.
When Verizon has anti-consumer policies. ie the timeline to upgrades, high prices and more...
no small wonder why people are choosing another company, no matter how strong their LTE network is.
no small wonder why people are choosing another company, no matter how strong their LTE network is.
With that inventory "problem" it just seems incredibly STUPID that Verizon is extending the user contracts to 2 FULL years instead of the 20 months it used to allow. They would be much smarter to allow a new phone each year and just let go of a little of their huge profit they like to steal from us
Universally, it's a nonsensical scam telecom has concocted.
Every two years we stick with General Electric, they should give us 71% off a Mac Pro upgrade.
No but this analysis sure seems inflated. As others have said, who in the world at Verizon would have signed up for having to sell 38M iPhones in one year? That number seems high. Of course doesn't stop the media and every tech site running with this story.
Apple minimum order requirement.
why are we letting analysts complain about this for verizon? You'd think if this were truly something that's a thorn in verizon's backside, they would've complained to the media already about how apple's requirements are too high.
That is the problem, Apple is inflating it's numbers by demanding carriers buy back all unsold stock.
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Is there any NDA involved?