Verizon sold more Android phones than iPhones in Q3 2012
3.1 million of them were iPhones (up from 2.7 million in Q2), and the majority of those iPhones were older models. Still, 21% were the iPhone 5 and that’s a pretty good percentage given that the new iPhone only sold for just over a week in the third quarter.
Still, interestingly enough, Verizon sold more Android smartphones than iPhones in this third quarter. That’s probably mostly due to the Samsung Galaxy S III, we’d guess.
The U.S. biggest carrier also said that its 4G LTE network now covers 250 million people in 419 markets across the States.
source: Verizon Wireless
Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported a third consecutive quarter of double-digit percentage growth in year-over-year earnings, as Verizon Wireless generated a second consecutive quarter of record-high margins and Verizon’s Wireline segment posted accelerated growth in consumer revenues.
Verizon reported 56 cents in EPS in third-quarter 2012, an increase of 14.3 percent compared with third-quarter 2011 earnings of 49 cents per share.
Adjusted third-quarter 2012 earnings (non-GAAP) of 64 cents per share exclude 8 cents per share for charges related to patent litigation settlements. Comparable adjusted third-quarter 2011 earnings of 56 cents per share excluded 7 cents per share for a non-operational charge related to an actuarial valuation of pension plans.
On Track to Meet 2012 Financial Objectives
“In the third quarter, Verizon continued to deliver double-digit earnings growth and strong cash generation, and we remain solidly on track to meet our financial objectives for the year,” said Lowell McAdam, Verizon chairman and CEO. “With our 4G LTE network advantage, well-received Share Everything Plans and unmatched product portfolio, Verizon Wireless continues to do an outstanding job of balancing growth and profitability. Wireless achieved record profitability in a quarter in which we reported the highest number of retail postpaid gross and net adds in four years.”
McAdam added: ”Based on the strength of our FiOS fiber-optic network, we reported the highest growth in U.S. consumer wireline revenues in 10 years. Additionally, strategic services growth in our Enterprise business helped offset weaker revenues caused by global economic challenges. We are confident that we have the right plans in place to meet these challenges while improving the long-term profitability in both Consumer and Enterprise.”
Continued Strong Revenue Growth; Year-to-Date Free Cash Flow Up 49.9 Percent
In third-quarter 2012, Verizon’s total operating revenues were $29.0 billion on a consolidated basis, an increase of 3.9 percent compared with third-quarter 2011.
Consolidated operating income was $5.5 billion in third-quarter 2012, compared with $4.6 billion in third-quarter 2011. Consolidated EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled $9.65 billion in third-quarter 2012, compared with $8.8 billion in third-quarter 2011.
Cash flow from operating activities totaled $24.8 billion in the first nine months of 2012, compared with $21.5 billion in the first nine months of 2011.
With capital expenditures of $11.3 billion in the first nine months of 2012, free cash flow (non-GAAP, cash flow from operations less capex) was $13.4 billion through third-quarter 2012, compared with $9.0 billion through third-quarter 2011 – an increase of 49.9 percent.
For full-year 2012, capital expenditures are expected to be lower than 2011 capital expenditures of $16.2 billion.
Verizon Wireless Results: Record Profitability, Strong Customer and Revenue Growth
In third-quarter 2012, Verizon Wireless delivered the highest number of retail postpaid net additions in four years; strong growth in revenues; an increase in smartphone penetration; and the highest segment EBITDA margin on service revenues (non-GAAP) in the company’s history, surpassing last quarter’s previous high.
Wireless Financial Highlights
Service revenues in the quarter totaled $16.2 billion, up 7.5 percent year over year. Retail service revenues grew 7.9 percent year over year, to $15.5 billion.
Total revenues were $19.0 billion, up 7.3 percent year over year.
Retail postpaid ARPA (average revenue per account) grew 6.5 percent over third-quarter 2011, to $145.42 per month. Following the recent introduction of the Share Everything Plan and as customers continue to add multiple devices to accounts, Verizon Wireless now reports ARPA instead of ARPU since customers can share data among multiple devices.
Wireless operating income margin was 31.8 percent and segment EBITDA margin on service revenues (non-GAAP) was 50.0 percent, setting record highs for the second consecutive quarter.
Wireless Operational Highlights
Verizon Wireless added 1.8 million retail net connections in the third quarter, including 1.5 million retail postpaid net connections, the highest in four years. These additions exclude acquisitions and adjustments.
At the end of the third quarter, the company had 95.9 million retail connections, a 5.7 percent increase year over year, including 90.4 million retail postpaid connections.
Verizon Wireless had 34.8 million retail postpaid accounts at the end of the third quarter, a 1.0 percent increase over the third quarter 2011, and an average of 2.6 connections per account, up 4.0 percent year over year.
At the end of the third quarter, smartphones constituted more than 53 percent of Verizon Wireless’ retail postpaid customer phone base, up from 50 percent at the end of second-quarter 2012.
Retail postpaid churn was 0.91 percent in the third quarter, an improvement of 3 basis points year over year. Total retail churn was 1.18 percent in the third quarter, an improvement of 8 basis points year over year.
Verizon Wireless continued to roll out its 4G LTE mobile broadband network, the largest 4G LTE network in the U.S. As of today (Oct. 18), Verizon Wireless 4G LTE service is available to more than 250 million people in 419 markets across the U.S.
The company introduced seven 4G LTE smartphones in third-quarter 2012: the DROID Incredible 4G LTE by HTC, Samsung Galaxy S III, Pantech Marauder, Intuition by LG, Samsung Galaxy Stellar, DROID RAZR M by Motorola, Apple iPhone 5; and one 4G LTE tablet, the Samsung Galaxy Tab 2. The company also announced the availability of the DROID RAZR HD and the RAZR MAXX HD by Motorola, which are launching today.
After receiving FCC approval in late August, Verizon Wireless purchased AWS spectrum from SpectrumCo and Cox Communications, and also completed its spectrum transactions with T-Mobile USA Inc., Leap Wireless and Savary Island Wireless.
Wireline Results: Accelerated Consumer Revenue and ARPU Growth
In third-quarter 2012 in the Wireline segment, FiOS revenue growth led to strong overall revenue growth among U.S. consumer customers. In global enterprise and wholesale, increased sales of strategic services helped mitigate lower revenues resulting from continued secular and global economic impacts.
Wireline Financial Highlights
Third-quarter 2012 operating revenues were $9.9 billion, a decline of 2.3 percent compared with third-quarter 2011. Wireline operating income margin was 0.4 percent, compared with 0.5 percent in third-quarter 2011. Segment EBITDA margin (non-GAAP) was 21.7 percent in third-quarter 2012, compared with 21.4 percent in third-quarter 2011.
Consumer revenues grew 4.6 percent compared with third-quarter 2011. This is the highest year-over-year quarterly revenue increase in a decade and compares with a 2.5 percent year-over-year increase in second-quarter 2012.
Consumer ARPU for wireline services increased to $103.86 in third-quarter 2012, up 10.3 percent compared with third-quarter 2011. This is an acceleration from an 8.5 percent ARPU increase, comparing second-quarter 2012 with second-quarter 2011.
ARPU for FiOS customers was more than $150 in third-quarter 2012. FiOS services produced 66 percent of consumer wireline revenues in third-quarter 2012. About two-thirds of FiOS consumer customers have purchased a “triple play” of phone, Internet and video services.
Global enterprise revenues totaled $3.8 billion in the quarter, down 3.6 percent compared with third-quarter 2011. Sales of strategic services increased 4.4 percent compared with third-quarter 2011 and represented 53 percent of global enterprise revenues in third-quarter 2012. Strategic services include Verizon Terremark cloud and data center services, security and IT solutions, advanced communications, and strategic networking.
Wireline Operational Highlights
Verizon added 136,000 net new FiOS Internet connections and 119,000 net new FiOS Video connections in third-quarter 2012. Verizon had a total of 5.3 million FiOS Internet and 4.6 million FiOS Video connections at the end of the quarter, representing year-over-year increases of 14.4 percent and 15.4 percent, respectively.
FiOS penetration (subscribers as a percentage of potential subscribers) continued to increase. FiOS Internet penetration was 37.0 percent at the end of third-quarter 2012, compared with 34.6 percent at the end of third-quarter 2011. In the same periods, FiOS Video penetration was 32.9 percent, compared with 30.6 percent. The FiOS network now passes 17.4 million premises.
Broadband connections totaled 8.8 million at the end of third-quarter 2012, a 2.3 percent year-over-year increase.
During the third quarter, Verizon continued building its network of the future by deploying 100G (gigabits per second) technology throughout the U.S. Cloud applications, video distribution applications and wireless technologies, such as LTE, are driving the need for 100G deployment. On its long-haul network, Verizon has connected major metropolitan areas with this next-generation 100G technology. The company has also deployed 100G on several network routes in Europe.
Verizon Enterprise Solutions Highlights
Verizon Enterprise Solutions – a global sales and marketing organization that harnesses all of Verizon’s cloud, mobility and other platforms to serve the rapidly transforming enterprise market with integrated solutions – continued to expand and enhance its capabilities in the U.S. and abroad in third-quarter 2012. The organization saw new customers leveraging its dynamic cloud, intelligent networks, mobility and machine-to-machine (M2M) platforms, while the organization made significant announcements and won recognition during the quarter. Among highlights, Verizon Enterprise Solutions:
Initiated work with Palace Sports & Entertainment in Michigan to deliver fans a live high-tech experience, incorporating digital signage and social media, fan-friendly Wi-Fi and digital menu boards;
Was selected by Stefanini, a global IT services provider based in Brazil, to provide secure hybrid cloud services to manage business-critical applications and development platforms in 32 world markets;
Implemented a key transformative health IT initiative for Gentiva Health Services, the largest provider of home health and hospice services in the U.S. based on revenues;
Began leveraging synergies with Verizon-acquired Hughes Telematics Inc. to deliver advanced automotive and fleet telematics and M2M services; and,
Won both Gatekeeper accreditation and a Common Criteria product certification from the Australian federal government – the first company to do so – recognizing the company’s expertise in delivering specific Identity Access Management.
Further Verizon Enterprise Solutions third-quarter 2012 highlights are available online at http://www.verizonbusiness.com/go/Q3.
Pension Funding Details
Verizon yesterday announced an agreement to transfer pension assets to The Prudential Insurance Company of America by purchasing a single premium group-annuity contract to settle approximately $7.5 billion of Verizon’s obligations for approximately 41,000 participants under its management pension plan. The closing of the transaction, which is subject to certain conditions, is expected to occur in December 2012.
In connection with the closing, Verizon currently intends to contribute an aggregate of approximately $2.5 billion to the plan, including a $930 million contribution made last month, to provide for the annuity and so that the plan’s funding percentage does not decrease as a result of this transaction.
As a result, Verizon’s revised outlook for pension funding in 2012 is estimated to be $3.4 billion, compared with the $1.3 billion estimated at the beginning of the year. Assuming the closing of the transaction and the additional contribution, Verizon does not expect to have any cash-funding requirement for pensions in 2013.
1. wendygarett (unregistered)
Of course, android is the best :D
3. kshell1 (Posts: 1143; Member since: 05 Oct 2011)
Wendy, please make up your mind, its either Android or IOS
4. roldefol (Posts: 2858; Member since: 28 Jan 2011)
She's of two minds. Either that or she accepts Android is superior, but the iPhone is just so preeeetty that it warps her little mind.
7. wendygarett (unregistered)
definitely ios since I'm a die-hard fanboy, but why can't you give me a chance to praise android huh??
Thumb me down all you want, I'm born to be straight and honest. I'll praise if it's good and bash if it's bad, you will never stop me, YOU HEAR ME!!!
Why can't this site be neutral?? sigh... you guys never give me a chance at all :(
10. Lawliet (Posts: 160; Member since: 02 Jul 2012)
Everyone is born to be straight and honest, but life changes us.
I can't hear you at all, but I can read
11. wendygarett (unregistered)
but, am I wrong to say android is the best? LOL the article does prove it remains the best...
29. MorePhonesThanNeeded (Posts: 618; Member since: 23 Oct 2011)
How about you stop inciting conflict with your comments, you could learn to use a lot less sarcasm. Or perhaps not even say anything, there's an idea.
Want to act as if you are so mature, but look at your replies of late, couldn't more childish.
Anyway, Android has gotten more exposure thanks to all the news of litigation and Apples attempts to bar high profile devices. I have actually seen women out there with the Galaxy Note as their main phone, and that thing is super huge. Call it what you will VZW has a lot of phones to offer, I'm willing to bet this will continue for a while considering the Razr HD variants are on sale starting today.
Seems like the iPhone sales majority come from the older models, what does that tell you? Price cut gets iPhones selling. Who wrote this article, I hate when you guys toss in a seemingly random percentage and then do nothing with it. Out the other percentages or post none at all.
Android will more than likely get boosts from incoming monster super phones. Galaxy Note II, HTC DLX or whatever they decide to call it...and with all the exposure that Android has gotten with all these news stories of the war with Apple and MS, of course people will come in asking what's Android and why are these guys after it? Not to mention Android is quickly evolving, only time will tell.
12. roldefol (Posts: 2858; Member since: 28 Jan 2011)
There are a few of us who try to remain neutral, but what do you expect from a comments section inhabited by fanboys? I for one respect Apple design and quality but think their OS needs to grow up. And I love Android customization and choice of devices, but wish the manufacturers didn't kowtow to the carriers and made cleaner software with faster updates. I just laugh at Apple when its arrogance comes to the surface ("Apple Maps will be the most beautiful maps ever!')
13. wendygarett (unregistered)
I understand :D
It is all personnal preference
16. roldefol (Posts: 2858; Member since: 28 Jan 2011)
It should be, yes! But there are plenty in the comments section who believe anything Apple is utter crap that nobody should buy, ever. And a few Apple fans who will never accept that an Android device is worth buying either. It's like GM vs. Ford, Democrats vs. Republicans...
14. kshell1 (Posts: 1143; Member since: 05 Oct 2011)
i did not thumb you down wendy, i was just giving my opinion. ill thumb you up just to make you happy
15. wendygarett (unregistered)
Thanks, and here's yours :D
I always remember you because you are the one who convince me to get an android phones. It does awesome
Open os system rules!!! LOL
18. androiddownsouth (Posts: 598; Member since: 02 May 2012)
I think most of us honestly would like to see iOS, Android, and WP8 succeed and coexist without bs patent litigation, and just focus on making the best phones possible. The same solution will not work for all people, and choices are great.
I would bet the house that if Apple(and everyone else of course) would stop bickering over stupid patents(slide to unlock comes to mind), the venom towards Apple would decrease dramatically.
Let them all make kick ass phones, operating systems, and let us consumers choose and win!
47. CRICKETownz (Posts: 980; Member since: 24 Oct 2009)
your mistake is that you have something positive to say about iOS. these ppl want you to love android & android only...neutral is not welcome here. liking iOS cancels out any praise you offer to android. love android or get lost pretty much. im on the nuetral team b/c im a lover of technology not brand loyalty. welcome to the neutral team which consists of just us. thumbs down, &.....GO!
36. rusticguy (Posts: 2826; Member since: 11 Aug 2012)
"Wendy" likes Iphone but "Garret" the guy in pic likes Android. :)
19. Aeires (unregistered)
Q1 on the other hand...
23. anywherehome (Posts: 971; Member since: 13 Dec 2011)
But people start to realize that iPhone is really an inferior product
43. jroc74 (Posts: 4720; Member since: 30 Dec 2010)
And then there will be another quarter after that where Android phones will outsell the iPhone. So, no...it wont settle things.
The cycle will continue....its no big deal really.
5. PAPINYC (Posts: 2224; Member since: 30 Jul 2011)
Amazing how this article started out as a Verizon Android sales story for Q3 and ended up as a sales breakdown of iDuds for the same periOd.
Let's see what happens in Q4 with the Galaxy Note 2 joins the Galaxy S III at Verizon; I wonder how PhoneArena will spin those sales numbers?
51. ayephoner (Posts: 836; Member since: 09 Jun 2009)
q4 and q1 are the big ones for the iphone.
android is much more evenly spread.
the only truly fair comparison is annual sales.
6. eisenbricher (Posts: 970; Member since: 09 Aug 2012)
I see it dwindling down the death spiral... Only if they could put down their greed glasses. Now left is the huge cash bank. I say US govt, take it all and build societies on moon or mars.
20. PhenomFaz (Posts: 1064; Member since: 26 Sep 2012)
oh My Gosh! that's a BIG(sarcastic) surprise!
21. tristan7192002 (Posts: 3; Member since: 09 Nov 2011)
There is like 15 android phones compared to 3 iPhones at Verizon ...of course android should sell more...duh!!!!!
27. loli5 (Posts: 76; Member since: 08 Oct 2012)
Carriers don't make any money off of iphone sales since that greedy ass company doesn't like to pay people or share their profits. That is why most places push android over ios, especially VZN.
33. tedkord (Posts: 4432; Member since: 17 Jun 2009)
Except that 2 or 3 years ago die-hard iFans insisted that it would never happen. They keep moving the goal posts.
Five years ago, android was just vaporware, it would never come out.
Then, it would never beat iOS in market share.
Then, no single OEM would sell more smartphones than Apple. (I seem to remember a bet around that one)
One day soon, it will be that no single smartphone that starts with an "i" will sell better to men with two children and one dog.
44. jroc74 (Posts: 4720; Member since: 30 Dec 2010)
Exactly.....goal posts always seem to move. Sometimes they get moved back to old spots.
46. jroc74 (Posts: 4720; Member since: 30 Dec 2010)
and LMAO at the last line...I didnt read it carefully the first time.. lol
45. jroc74 (Posts: 4720; Member since: 30 Dec 2010)
Wait a min...first it was the iPhone only had one phone vs a million Android phones. Now its 3 iPhones vs a million Android phones.
I thought the iPhone was so great that if you factored in 2 other iPhone models....this would never happen?
Just give credit where its due. If you wanna talk about price in your next field goal attempt....There are $199 and $299 iPhone 5's...a FREE ..... iPhone 4...a $99 iPhone 4s. Only ...FREE...Android phones I see are the Samsung Stellar....whats that...and the HTC Rhyme. Did those phones even sell? The hot Android sellers at Verizon are RAZR and GS series. G Nex. Rezound. Maybe Bionic.
At some point....all these excuses wont fly anymore. They already dont...
22. Twisted247 (Posts: 197; Member since: 12 Oct 2012)
Well if you think about it Q3 ends in September unless they are speaking of their "physical/fiscal" which can vary for each company( which could still only end mid Oct. If the stats are currently out.. anyways I am a Android user, but the fact that the iPhone5 was only out for 2-3 weeks max(again depending on when their quarter ended) kinda makes this statement s**tty.
That is unless the iPhone was naturally dominant in the previous quarters in 2k12 over Android for Verizon then cool kudos to Android. If it wasn't then again these stats are pointless.. point out the stats for the 4th Q after they become available following the holiday season. Even though from people I have spoken with the more holiday oriented phone platform IMO is iOS strictly because its the "IN" thing and that's what all the kiddos will be asking for again just my opinion.
Anyways I'm always for a legit logical discussion
24. jmoita2 (Posts: 930; Member since: 23 Dec 2011)
LOL. Spin that, iPhone lovers...
I'm in the business, and so far all numbers indicate the "new" iPhone is a flop.
34. tedkord (Posts: 4432; Member since: 17 Jun 2009)
The new iPhone is in no way a flop.
When did we begin defining a flop as not selling twice as many as the last? The market is eventually going to reach a saturation point. No device is going to sell more every time.
25. kellkeezy (Posts: 57; Member since: 17 Dec 2011)
we sold more androids then iphones, because we get paid more off androids, so with the incentives for more money and better scores on our score cards makes that percentage higher
26. Whateverman (Posts: 3187; Member since: 17 May 2009)
How do you account for people who buy their phones online, with third party sites or with VZW customer service where there is no incentive to push one over the other? Face it, Android is much more appealing than some want to give credit for.
28. gallitoking (Posts: 4684; Member since: 17 May 2011)
this is not news to me. Android has more models out so they should sell more, when it comes in individuals sales that's is a different story as for Q4 the iphone 5 regain the throne as the most selling device..
ps. besides android has what 60-70 return rate... it makes sense..
30. androiddownsouth (Posts: 598; Member since: 02 May 2012)
Only way that return rate is that high would be b/c salespeople fail to properly qualify their customer and also fail at assisting the customer with tips on operating their device correctly. At my location, I've seen just as many iPhones returned for Android as I have the reverse.
Also, I'd bet you that if Android made just one or two kick ass devices, they would beat the iPhone in sales, so the OS vs OS argument is the only one that makes sense, imo.
31. EclipseGSX (Posts: 1560; Member since: 18 Oct 2011)
Apple has only 3 models so it should have the single most selling device...
32. MorePhonesThanNeeded (Posts: 618; Member since: 23 Oct 2011)
You are the most one sided person I even seen on here, you skew things to suit your twisted logic. Now if iPhone sold more than Android, you would be saying "take that android, iPhone has less models and still outsold Android". What a transparent little person you really are, I just gave you your comment for when iPhone outsells Android on another Provider ok, you can take it home with you.
Don't think magically iPhone 5 will take the throne considering that it will have even more phones to deal with the monster battery toting Droid Razr Maxx HD just took off today too and incoming will be the Galaxy Note II so I say that all 4th Quarter bets are off for the iPhone 5 taking any sales crown at VZW.
Incredible, there are so many of your type the world over, blind devotion for no real reason at all.
38. gallitoking (Posts: 4684; Member since: 17 May 2011)
there are a bunch of one sided people here just because there are on Android I guess dont count, like i always say.,. always using the future.. "wait until such and such devices comes out will blow the iphone out of the water".... lately in sales only the RAZR has done it in a quarter but keep saying it one day it will become true
49. jroc74 (Posts: 4720; Member since: 30 Dec 2010)
And if it does happen, guess what? The world wont spin in the opposite direction, the sky wont become pink.
Why does a phone have to blow another phone out the water to be considered a success? Why does a phone have to blow the iPhone out the water to be considered a success?
Choice....is success to me. It helped pushed the iPhone to the status its at now. Whether you believe it or not ppl ....chose...the iPhone over Blackberry, Win Mo and Palm. Many ppl would say the G Nex and Rezound was a better phone than the RAZR. The RAZR line must have done something good for it to sell like it did.
35. tedkord (Posts: 4432; Member since: 17 Jun 2009)
Stop making up statistics to mask your butthurt. You have no idea how many Androids are returned, or for what reason.
37. gallitoking (Posts: 4684; Member since: 17 May 2011)
reports on Androids return rate is al over the web just google it and dont act surprise
39. Aeires (unregistered)
Let's do that.
Yes, just as everyone here knew, BS stats from a rabid iFan that don't hold up under scrutiny.
42. tedkord (Posts: 4432; Member since: 17 Jun 2009)
Exactly. How could Android maintain and increase its staggering lead in market share if huge numbers of devices were being returned? It makes zero logical sense, not that facts ever swayed a true iF an.
48. jroc74 (Posts: 4720; Member since: 30 Dec 2010)
Ya know....I never thought of that. If the return rate was so high....word of mouth would kill of Android market share fast. High return rate...and ppl would still pick it over the iPhone thats now more affordable?
Seriously...not buying it.
50. gallitoking (Posts: 4684; Member since: 17 May 2011)
you are right about 30-40 ok. . is actually higher like I said.. but you guys will dispute my website just like I dispute yours...
52. Aeires (unregistered)
You didn't link a website, so at this moment all you have it talk.
55. Aeires (unregistered)
"...on some Android devices..."
So maybe there is a low end model of phone that gets returned a lot. With over 300 different phones, it's not hard to believe. What I find impossible to believe is Android in general has a return rate of 30-40 percent. Biggs took one statistic on an individual phone, or small handful of phones, and tied to the entire ecosystem of phones. Poor journalism, but that's how iFans role, taking things totally out of proportion to reality.
And didn't your original comment say it was 60-70 percent return rate? Yes.
41. tedkord (Posts: 4432; Member since: 17 Jun 2009)
That was debunked long ago, and you know it. Don't feel you need to take up the slack in lying that Taco left when he was permabanned.
40. drnggaj33 (Posts: 127; Member since: 29 Feb 2012)
you can thank the sam nexus and sam s3 last yrs phone of the year the nexus and this yrs phone sam s3 ......to many isheep tho anyway
53. Twisted247 (Posts: 197; Member since: 12 Oct 2012)
Can't wait to see the GN2 absolutely take over when it releases!