Printed from http://www.electronista.com

Verizon CFO Shammo addresses iPhone 4 sales, FiOS

updated 10:40 pm EST, Mon March 4, 2013

No plan to 'incent' phones with lower subsidies

Speaking at the Deutsche Bank 2013 Media, Internet, and Telecom Conference, Verizon Communications Chief Financial Officer Fran Shammo said that the company has no interest in offering additional commissions for sales staff to sell low-end phones over the free iPhone 4 with contract on the carrier. The CFO also addressed the impact of the FiOS network on the company's bottom line, as well as the impact of tablet sales on the company.

Shammo claimed that "the worst thing that can happen for us is for me to incent [sic] a salesperson to get you into a phone that you walk out the door with thinking you are going to like and in three days you come back because you don't like it. Therefore, now I've just subsidized two smartphones because that phone you used I can't resell as a new phone." In 2012, 53 percent of the company's smartphone sales were iPhones, an improvement of 44 percent from the previous year. The iPhone has a tendency to have the highest subsidy payments of all the phone providers.

Verizon's FiOS Internet service continues to drive profits for the company -- Shammo claims that the service is "about 70 percent of the revenues for the consumer side." Related to the consumer side, the joint Redbox service was referred to by Shammo as a "startup," and he said he expects some hits to the company's bottom line in 2013 from it.

Shammo said that 70 percent of tablet sales are just Wi-Fi models, or never connected to a 3G or LTE wireless network. He claimed that the company's "Share Everything" plan would lead to a higher attachment rate, but saw a lower-than-expected adoption rate. He does expect the "profile of usage" to increase, which when coupled with tiered data plans, should ultimately boost profits even more than current levels.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

IDrive cloud backup and sync service

There are a lot of cloud services out there, and nearly all of them can be used for backing up key files and folders. A few dedicated ...

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Sponsor

toggle

Most Commented

 
toggle

Popular News