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Verizon CFO says free Apple iPhone 4 was a big hit in Q4

Posted: , by Alan F.

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Verizon CFO says free Apple iPhone 4 was a big hit in Q4
The Apple iPhone 4 is free at Verizon with a signed two-year pact

The Apple iPhone 4 is free at Verizon with a signed two-year pact

Verizon CFO Fran Shammo got to speak at the Deutsche Bank Media, Internet, and Telecom Conference during which he mentioned how popular the Apple iPhone 4 became at Verizon during the fourth quarter of 2012. During the final three months of last year, Big Red activated 9.8 million smartphones of which 6.2 million were the Apple iPhone, the best performing quarter that Apple's iconic smartphone has had with Verizon since it became available from the carrier in 2011. Shammo said that the drop in price of the Apple iPhone 4 to zero was behind the record-breaking fourth quarter.

Since the Apple iPhone 4 is not an LTE enabled model, all of those customers that agreed to be handcuffed to Big Red for two years added to Verizon's 3G subscriber rolls. And with no money budgeted for the carrier's 3G network except for maintenance, those accounts generate revenue that practically flows right to the bottom line. The Verizon executive also said that the nation's largest carrier will not offer incentives to sales reps to sell low-subsidy devices to customers to pump up profit margins. Shammo let it be known that he is against that practice as his goal is for Verizon customers to leave the store with the device that they want.

"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."-Fran Shammo, CFO, Verizon

Earlier on Monday, we told you how Shammo told the Conference that Verizon might soon 86 the 3G phones on its lineup (despite the success of the Apple iPhone 4), and reduce the carrier subsidies that allow you to buy a new handset for $199 to $299 with a two-year contract.

source: VerizonTranscript via AppleInsider

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posted on 04 Mar 2013, 23:08 4

1. wumberpeb (Posts: 414; Member since: 14 Mar 2011)


It's s huge hit for Sprint as well, and nobody is buying the iPhone 5. I honestly even sell triple the 4s than I do the 5. There's always going to be that customer who wants an upgrade and just wants the absolute cheapest thing around, regardless of quality, and the iPhone fits the bill perfectly. No mail in rebate makes all the difference

posted on 04 Mar 2013, 23:10 6

2. wumberpeb (Posts: 414; Member since: 14 Mar 2011)


They'll be pissed in a year when that measly 8GB of storage runs out and the phone runs like dog $hit, but you asked for it...SD card for the win

posted on 05 Mar 2013, 00:17 1

3. anywherehome (Posts: 971; Member since: 13 Dec 2011)


..sorry :)

posted on 05 Mar 2013, 00:22 2

5. anywherehome (Posts: 971; Member since: 13 Dec 2011)


just of an interest....if you see this:
http://www.android.com/whatsnew/
why did you buy such an iConboard? :)
I personally wouldn't want any iConboard even for free....its too dumb for everyday usage, you even
1) cant choose your default app
2) or watch your calendar on home screen :)
3) or just plug USB flash with MKV movies
how any one could call any iPhone as a smartphone? :)

posted on 05 Mar 2013, 00:19 1

4. corporateJP (Posts: 1520; Member since: 28 Nov 2009)


Just when you think the world is becoming a better place, this roach comes out of hiding.

Straight Talk loves this guy, his customer-friendly policies are great for their bottom line.

posted on 05 Mar 2013, 00:23

6. anywherehome (Posts: 971; Member since: 13 Dec 2011)


no, they are just making fun of not so clever customers :)

posted on 05 Mar 2013, 02:56 1

7. rusticguy (Posts: 2820; Member since: 11 Aug 2012)


iPhone 3GS is selling for ~10k in India on ebay and still no one is buying for the logo :D

posted on 05 Mar 2013, 05:27 2

8. bluescreen (Posts: 154; Member since: 22 Nov 2012)


the iflop4 was only a big hit in quater 4 was cause it was so cheap

posted on 05 Mar 2013, 09:15

9. mrblah (Posts: 406; Member since: 22 Jan 2013)


iflop? that phone sold like crazy from day one.

posted on 05 Mar 2013, 10:40 1

10. gwuhua1984 (Posts: 1237; Member since: 06 Mar 2012)


And some people claim that Android users are cheap... and iOS users are not... Those ignorant fools....

posted on 05 Mar 2013, 16:02

11. roscuthiii (Posts: 1785; Member since: 18 Jul 2010)


Ah yes... Verizon's free iPhone 4? Why, it's just the phone that made my mom and Android fangirl. That's right, my mother. Now loves Android because of the iPhone.

After being frustrated with the iPhone she went out and got a Nexus and now keeps pushing for everyone to get Nexus devices. Way to go Apple.

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