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Verizon talks profit fall, hopes for iPhone

updated 03:25 pm EDT, Mon October 26, 2009

Verizon adds just 1.2m new users

Verizon today reported mixed results for its summer quarter and reiterated its invitation to Apple. The carrier said its operating revenue grew year-over-year by more than 10 percent to $27.3 billion but that its actual earnings per shared dropped a sharp 30.5 percent from 59 cents per share a year ago to 41 cents today, or $2.88 billion. Most of the growth came about from added cellphone and FiOS customers.

Its cellular business in particular exhibited its own uncertain performance. While the buyout of Alltel helped jump its subscription numbers 25 percent to 89 million phone users, it only added 1.2 million total new customers during the summer, significantly fewer than the two million AT&T additions during the same period. Its average data revenue per person climbed 17.2 percent in the one-year span to $15.59, but its combined revenue for these users dropped 2.2 percent to $51.04.

The figures narrow the gap in mobile subscribers between AT&T and Verizon to 7.4 million users and show a reverse in the amount customers are willing to pay compared to Verizon's rival, where the average revenue went up 3.8 percent. Without a clear flagship device, Verizon is still known to be losing some of its customers to AT&T for the iPhone; a third of new iPhone owners were new to AT&T's network.

In a conference call discussing the results, Verizon CEO Ivan Seidenberg reiterated his company's position on the Apple device. While he explained that the decision is "exclusively in Apple's court" as to whether or not it wants to make a Verizon iPhone, he expressed a desire Apple would "hopefully" sign on as part of a move to broaden Verizon's phone catalog.

The remarks are a sharp contrast to Verizon's Motorola Droid ad campaign, which has directly criticized Apple for its closed, single-tasking platform and promoted the imminent Android phone as a direct challenger to the iPhone. Some have interpreted the ad campaign as a sign of a more permanent rift between Verizon and Apple, but the former is known to quickly switch allegiances and has timed its BlackBerry Storm2 launch to occur the same day as the Droid's unveiling, guaranteeing little attention for the once heavily publicized original Storm.



By Electronista Staff
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Comments

  1. appleuzr

    Fresh-Faced Recruit

    Joined: Aug 2006

    +5

    Begging for mercy...

    Apple has them right where it wants them.

  1. msuper69

    Professional Poster

    Joined: Jan 2000

    +2

    Verizon is working at cross purposes...

    They want the iPhone and also think the iPhone is deficient as evidenced by their anti 'iDevice' campaign.

    Which is it?

    I'd like to see Verizon get the iPhone as I would drop AT&T like a hot potato if they did.

  1. Jeffois

    Fresh-Faced Recruit

    Joined: Nov 2002

    +3

    Why not do both?

    From the perspective of Verizon, why not slam the iPhone in commercials? For the moment, it belongs only to a competitor, and it isn't like they're lying in the commercials. The things they say in the ad are all true, even if I consider many of the criticisms to be trivial, at least as far as my own needs. For others, one or many of those may very well be deal-breakers. Until they have the iPhone, they'd be crazy not to run ads for their competing products.

    I see no contradiction in business terms between them courting Apple and promoting their competing phones.

    Of course, as an iPhone-loving AT&T customer, I'd love to see a VZW iPhone, if only for the competition. I'd like the option of companies with which to use my favorite toy.

  1. jamesfabin

    Fresh-Faced Recruit

    Joined: Aug 2007

    +1

    I'd switch in a heart beat

    The day Verizon announces the iPhone on it's network, I'm switching. I love my iPhone and can't imaging living without it (I bought each new model the day it came out). The only downside to my phone has been the poor AT&T network. Too many dropped calls, customer service can be great one day, then very poor the next. I'll be happy to cut AT&T an early termination check to switch to Verizon.

  1. Fast iBook

    Fresh-Faced Recruit

    Joined: Mar 2003

    +1

    Apple....

    Will not "switch to" verizon, but expand to verizon etc.

    - A

  1. MacMan2000

    Fresh-Faced Recruit

    Joined: Aug 2008

    +1

    Wondering....

    I thought Verison already turned down the iPhone a few years ago? I might be wrong tho...

  1. Eldernorm

    Fresh-Faced Recruit

    Joined: Sep 2007

    +1

    What a crock

    "the decision is "exclusively in Apple's court" as to whether or not it wants to make a Verizon iPhone,"

    Yea. Verizon is saying " when you kiss our big butts we will let you bring your phone to our old CDMA network........ please.!!"

    Apple will appear on Verizon only when 4G comes out and maybe not even then. Verizon wants full control.... ref VCAST etc. No way on the iPhone.

    Just a thought.
    en

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