Revenue in the wireless sector rose 3.4% year-over-year to $16 billion while the average revenue per user grew 1% to $51.56. Data plan sales rose 19% to $17.85 per customer. Wall Street analysts were jumping all over each other to praise Verizon. Christopher King from Stifel, Nicolaus said, "They’re doing far better than AT&T both from a margin standpoint and a net-add standpoint," said King, "While there’s no question that Verizon would like to have the iPhone all else being equal -- it’s still the premier handset out there -- it’s not a necessity for them." Sanford C. Bernstein's Craig Moffett gushed, "They continue to run the most profitable wireless business, and by a wide margin."
For the company as a whole, the second quarter brought profits of 58 cents a share before taking account of the costs of lay-offs. While that was lower than the prior year's 63 cents a share in profits. Wall Street was expecting profits of 56 cents a share. Verizon's wireless sector was boosted by the strength of its Android line-up which should get a kick in this current quarter from the strong launch of the Motorola DROID X which was released on July 15th and remains sold out at some Verizon stores.
Motorola DROID X Specifications | Review
source: Bloomberg, TimesNewsline