Verizon activated close to 5.5 million Apple iPhones in Q4

Verizon activated close to 5.5 million Apple iPhones in Q4
Verizon recently filed SEC Form 8-K and made a few comments about the quarter that ended last month. According to the filing, Verizon activated a total of 9.8 million smartphones over the three month period with a higher mix of Apple iPhones in the total. Additionally, Big Red told the SEC that it added 2.1 million new post-paid subscribers on a net basis.

Considering that in the 2011 fourth quarter, the Apple iPhone comprised 55% of Verizon's smartphone activations, the "higher mix" of iPhone activations for the final three months of 2012 could be no less than 56%. Take that figure, multiply by the 9.8 million smartphones activated in Q4 and you cam easily calculate that Verizon activated 5.49 million units of Apple's iconic smartphone from October through December, 2012.

One negative impact on its results for the quarter is listed in the filing. Verizon said that it had higher indirect channel sales in the quarter during 2012 than in 2011. Those sales resulted in lower EBITDA service margins which might have exerted some downward pressure on the carrier's gross margins for the period, but probably not enough to seriously impact earnings for the three months.

AT&T continues to have a much higher mix of Apple iPhones in its smartphone activations. Last year, the Apple iPhone accounted for a whopping 82% of the operator's smartphone activations in the fourth quarter versus the aforementioned 55% at Verizon. This year's fourth quarter will show Apple's smartphone accounting for more than 80% of the mix at AT&T vs. the 56% at Verizon according to Chuck Jones, an analyst that covers the industry.

Interestingly, prior to the launch of the Apple iPhone 4S, the iPhone accounted for 56% of AT&T's smartphone activations. The next quarter, following the launch of the 5th generation iPhone, that percentage rose to the 82% that we already mentioned. The Apple iPhone 4S also jacked up the iPhone's share of the smartphone mix at Verizon from 36% of activations to 55% the very next quarter. Was Siri responsible for this?

So what percentage of smartphone activations at AT&T and Verizon does the Apple iPhone 5 represent? 81% and 61% respectively. You can say that the reason for the 20% gap between the the top two U.S. carriers dates back to AT&T's exclusive rights to the Apple iPhone in the U.S. from June 2007 through February 2011. Showing the power of advertising, there might be many Apple iPhone buyers in the states that immediately think of AT&T when they decide that they want to buy an Apple iPhone.

source: YahooFinance via Forbes


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56 Comments

56. amirata_xman

Posts: 33; Member since: Jan 05, 2013

waaaaaaw 5.5!!!!

47. belovedson

Posts: 1061; Member since: Nov 30, 2010

apple is losing its momentum. the iphone is losing its edge on the competition. its all about innovation and frankly its tough to match the ferver of android. in the meantime. apple make the best labtops hands down

55. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

I think overall they also make the best tablets too. All areas considered.

42. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

The hatred towards Apple will remain as long they keep making the money that they do. Anybody that can say, with a straight face, that their business model is horrible is obviously not even worth entertaining. Everybody's a critic & usually those people are just sideliners. I don't get why ppl are so worried about what Apple does. Sit down...here you are living check to check yet you are supposed to hv the greatest ideas on how a multimillion dollar company should do things? Interesting. Fandroids talk spec sheets til they are blue in the face but guess what...at the end of the day it doesn't matter. Nobody really gives a flying f*ck about benchmark tests, over clocking, rooting & all that other nonsense that you bicker about on this forum. The population of people that flat out just don't give a sh*t about any of that outweighs the ppl that do...sorry to say. It doesn't make them any less smart they are just more practical. The minute you all open your eyes to this reality & stop looking thru a scope of specs, specs, specs...you'll understand why iPhone continues to be a threat to any smart phone manufacturer. It's okay to come out of denial...the phone or the company is not going anywhere any time soon but in the end, it's still just a f'n phone ppl. Carriers going away from particular perks will happen whether they carry the iPhone or not bc they are ALWAYS going to do what's profitable. You can't expect a business to offer the same perks that they offered for the basic equipment as they do for the high end. The sense of entitlement that the average consumer has is sickening. Apple can't be the scapegoat for everything, move on already.

48. Sniggly

Posts: 7305; Member since: Dec 05, 2009

On carrier benefits disappearing: the pattern is undeniable. Hell, when you have carriers flat out refusing to carry the iPhone because Apple demands too much money to allow the carrier to sell it, something is seriously f**king wrong. AT&T, Verizon and Sprint have each in turn killed customer incentives and/or raised prices since carrying the iPhone, versus carrying other smartphones. T-Mobile, as it's rumored to eventually carry the iPhone, is pushing hard to get rid of carrier subsidies on phones completely. All that aside, I take umbrage with Apple because they as a company have tried to limit my choices as a consumer with the government as their tool. Apple wants people to only be able to buy s**t through Apple. Their patterns of behavior make this painfully obvious to all but the most blind of people. Now, other companies aren't perfect either, but they tend to come out a hell of a lot better than Apple does in the "non evil" arena.

22. Ruckus

Posts: 286; Member since: Oct 20, 2011

Well said greathero! As a Windows Phone guy, I do see so much Apple bashing. And for what reason? Do you "hate" Apple? Are you "upset" that their devices sell well? Because if so then you need a life. I wont buy Apple but I admit their product is great. There will he a day when they are tested and get crushed but im sure the same will happen to Android.

11. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

Y hate on the iphone? If it sold well, it sold well. Get a life.

15. Droiddoes unregistered

Are you legit illiterate or are you making a deliberate effort to be this dense? I've already given the reasons to "hate" on the thing, and VZN has every right to hate on it too.

20. greathero1

Posts: 584; Member since: Jun 13, 2008

Whatever reasons you have, you really need to get over it. I mean is it really necessary to cry, moan, and complain everyday and on every post related to the iPhone? It's not that serious at all.

26. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

Dude all u do is hate on apple/iOS. Remember the iPhone only caters to old people, and kids... Do u think they give a crap,about your negative rants? All this hot air u blow is falling on deaf ears, other than the childish folks who lol u, and green thumb u.

29. chaoticrazor

Posts: 2347; Member since: Aug 28, 2012

i agree with what you mean but the iphone appeals not just to old people and kids, i know many who are classed as smart who choose the iphone as its simple and controlled so they have everything in one place dont let the android fanboys drill into you that apple only apeal to old and young, its far from the truth ''Droiddoes'' is a no nothing fanboy upset over a device, shows how sad his life is

34. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

No that was meant as sarcasm lol in that he blasts the iphone constantly but claims its for old people and kids.

38. Droiddoes unregistered

I have never made any such claim. I blast it because it is a collossal failure and I find it hilarious how apple is playing damage control. I hate the company because they stiffle the competition from making true innovations by suing and patent trolling and banning devices. Every single thing about apples business model is disgusting, and I have every right to blast them and call them out on it.

53. nwright94 unregistered

You are so sad. Did Apple kill your parents? Did they affect your life in a bad way in any way? No, so stop acting like it. It's sad that people are so quick to jump to the defense of a corporation who cares nothing about their users and only care about making money. Apple, Microsoft, Samsung, google are all in it for the money. There's no point in looking like one of those twilight fans defending twilight even though it has nothing to do with you.

54. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

U hit the nail on the head bro

37. Whateverman

Posts: 3295; Member since: May 17, 2009

I have to admit I hate the iPhone too. Or maybe not the phone itself, but what I does to carriers once they start selling it. Every since VZW got the iPhone, they've taken any EVERY perk to being a customer and raised prices on EVERYTHING from the service plans, text messaging, and even competitors device in an attempt to recoup whatever it is they had to give up to be able to sell it. There's no more annual upgrades, no more New Every Two discounts, we now have upgrade fees, and now our unlimited plans are history. It does no good to moan or cry about it, true. But knowing the iPhone is the biggest reason that all this is happening kinda makes some of us feel a certain amount of disdain for Apple's cash cow. We won't even get into Apple's business practices, treatment of customers, and the whole going thermal nuclear thing. None of that helps.

39. Droiddoes unregistered

THANK YOU. It could not have been said any better. Maybe these simpletons can wrap their head around your description of why apple is bad for carriers and retailers, since they obviously are too drunk on apple juice to understand what I said.

43. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

Whateverman I can respect your post due to its maturity. Apple does have some questionable business practices, that I don't like but these childlike rants on PA r just that. Your post was good one.

45. gallitoking

Posts: 4721; Member since: May 17, 2011

people speak like Google or Samsung is perfect... but is always abou what the other company is doing

46. Whateverman

Posts: 3295; Member since: May 17, 2009

True, it's getting rediculous around here. To my fellow Android users, com'on guys. Your giving us all bad names. As for you jedii... gotta applaud you for taking the fight to em' on both sides, Android and IOS users. +1 sir.

49. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

Thank u bro

8. Aeires unregistered

iPhone finally gets 4G + holiday shopping = no duh. Sales during this quarter are always higher than the one following it for the iPhone. If you really want true stats, look at total annual sales of any phone, not just one quarter. That goes for any phone, not just the iPhone.

5. Droiddoes unregistered

That sucks for VZN. Since apple is run by a greedy f*ck and retains 100% of the profits from iphone sales, VZN didn't make a dime off those 5.5mil units. In fact, when you factor in the labor to sell and activate the thing they actually lost money. And people wonder why VZN was instructing their sales team to push Android/BB/WP devices over iNovelties.

16. superiorbeefjerky

Posts: 14; Member since: Feb 18, 2011

What are you talking about? Verizon, ATT, and Apple are all greedy. Have you check to see what you are paying each month to Verizon and ATT to have smartphone in your pocket for two year? $80-120 times 24. You do the math.

17. Droiddoes unregistered

Fascinating, but completely irrelevant to the point I'm making. Which is, apple does not share profits made off the iphone with the carriers or the retailers. HTC, Samsung, Motorola, Nokia, RIM, literally EVERY other manufacturer gives them some kind of incentive to sell their devices (revenue). apple gives them the "priveledge" of selling their crap. It has absolutely NOTHING to do with the price of plans. Yes, I know excatly what I pay each month for service which is nothing because I get an awesome deal through work, but prior to that I paid $140 pm for two lines. Not a big deal, that really is not some grandiose sum of money.

21. greathero1

Posts: 584; Member since: Jun 13, 2008

Did you ever think those manufacturers give them an incentive because they have to? With exception of Samsung, what has the other manufacturers done over the past couple of years? Also, all the other manufacturers definitely would love to have the kind of leverage that Apple has. Its business and its how things are done depending on their position. If Motorola, RIM, and the others ever get in a position to where they can dictate the terms more favorably in their direction, trust me they will. Its business/economics 101. Check all the female emotions and see it for what it is dude.

24. Droiddoes unregistered

You...you really don't understand how business works do you?

27. greathero1

Posts: 584; Member since: Jun 13, 2008

I understand completely how businesses work. Probably should ask yourself the same question. Im pretty sure VZ would love to make higher margins off the hardware they sale but if they want to sale the iPhone, its a reality that they have to live with and one that they obviously don't have to much of an issue with because they are definitely not going to drop the iPhone from their line up. If VZ has accepted the terms, you probably should to. I mean, I really don't see the issue here. You try to make it seem like VZ is some kind of victim when they will twist an arm just as fast as Apple or any other corporation if its in their best interest to. Its a dog eat dog world. Relax fellow fandroid!

31. billybuttpounder

Posts: 105; Member since: Dec 28, 2012

Nope, Droiddoes is right. You really don't seem to understand how businesses work.

36. darkkjedii

Posts: 31798; Member since: Feb 05, 2011

Very very good post.

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