updated 11:10 am EDT, Mon July 28, 2008
Verizon on iPhone 3G Intro
The launch of the iPhone 3G has affected Verizon's sales since launch but only in a small way, the company said today when discussing its latest quarterly results. In response to a question during the US phone provider's conference call for its spring figures, the company argues that the Apple device had a "minimally short-term impact" on Verizon since the July 11th launch and that the handset's influence was "disproportionately less" than could be expected for the respective market shares of AT&T and Verizon.
The carrier hasn't provided more precise estimates for any customer shift, although its strategy is less dependent on "any one device," according to company officials. AT&T has said that its agreement to subsidize the price of the iPhone 3G will have an effect on its near-term income but is counting on long-term revenue from contracts to make up the difference.
Verizon also asserts that the original iPhone onwards have had a stimulating effect on its own sales. Over 30 percent of phones sold are now smartphones, the firm says. These devices often have a higher up-front price and are similarly more lucrative in the long term, as customers are more likely to attach data plans and other services that translate to a higher average revenue per month for each user.
The claims follow data from a spring quarter in which Verizon says it added 1.5 million net customers, outpacing AT&T's 1.3 million during the same period and narrowing AT&T's lead in its total subscriber base. AT&T however dealt with iPhone shortages during that quarter that it says affected its results.