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

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


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

Related phones

iPhone 4 Verizon
  • Display 3.5" 640 x 960 pixels
  • Camera 5 MP / 0.3 MP VGA front
  • Processor Apple A4, Single core, 1000 MHz
  • Storage 32 GB
  • Battery 1420 mAh(7.00h talk time)

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11 Comments

1. wumberpeb

Posts: 453; Member since: Mar 14, 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

2. wumberpeb

Posts: 453; Member since: Mar 14, 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

3. anywherehome

Posts: 971; Member since: Dec 13, 2011

..sorry :)

5. anywherehome

Posts: 971; Member since: Dec 13, 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? :)

4. corporateJP

Posts: 2458; Member since: Nov 28, 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.

6. anywherehome

Posts: 971; Member since: Dec 13, 2011

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

7. rusticguy

Posts: 2828; Member since: Aug 11, 2012

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

8. bluescreen

Posts: 154; Member since: Nov 22, 2012

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

9. mrblah

Posts: 577; Member since: Jan 22, 2013

iflop? that phone sold like crazy from day one.

10. gwuhua1984

Posts: 1237; Member since: Mar 06, 2012

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

11. roscuthiii

Posts: 2383; Member since: Jul 18, 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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