Verizon’s iPhone Sales Beat Wall Street Expectations
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Verizon reported its second-quarter profit, topped Wall Street estimates as it attracted more new customers than expected, having one full quarter under its belt of selling the iPhone. Verizon added 1.3 million net subscribers in the quarter compared with the average expectation for about 930,000.
The company presented a net income of $1.61 billion, or 57 cents a share, compared with a loss of $1.19 billion during the same period last year. Analysts surveyed by Thomson Reuters had expected the company to report a profit of 55 cents per share, compared with earnings of 58 cents per share in last year’s quarter.
“In the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth,” said Ivan Seidenberg, Verizon CEO.
Verizon recently began rolling out its so-called 4G wireless network, which uses LTE wireless technology, with plans around heavily marketing tablets and smartphones that are compatible with the new technology.
Analysts anticipated that the introduction of Apple’s iPhone 4 and the company’s portfolio of 4G devices would help withstand Verizon’s subscriber numbers. The company activated 2.3 million iPhones during the quarter, bringing the total number of iPhones Verizon has activated since February to 4.5 million, and Verizon continued to see sales from its catalog of Android and 4G devices.
Verizon’s iPhone can help sell millions of new devices, continuing the iPhone’s strong momentum. It may also become a hindrance to the rapid rise of Android devices, most of which are sold by Verizon Wireless. While the iPhone remains the best-selling smartphone in the United States, many handset creators sell devices running Google’s Android software, with combined sales that outdo the iPhone.
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