Verizon reports loss in Q4, net subscribers increase the most in three years thanks to record iPhone sales

Verizon reports loss in Q4, net subscribers increase the most in three years thanks to record iPhone sales
Verizon added 1.5 million net retail customers in Q4 - that's the most the carrier has done in three years, riding high on the iPhone 4S excitement.

Its overall 7.7 million smartphone additions fell a bit short of expectations, so the 1.2 million postpaid subscribers it added were mainly due to doubling the iPhone 4S units sold to over four million, compared to the previous quarter.

The carrier still logged a loss of $2.02 billion because of one-time pension plan revaluation charge of $3.4 billion, but also thanks to the large susbsidies it shells out for all those iPhones. The carrier is, of course, hoping to recuperate the initial investment over the life span of a typical contract, which brings about $2000 to it on average.

One of the expected, but still interesting developments is the huge spike in data revenues - the carrier raked in $6.3 billion of data revenue, representing roughly 42% of its total.

This only shows the growing importance of data for carriers, with the traditional channels like voice and especially text with its huge margins, likely to get less and less important down the road. Verizon now stands at 108.7 million total subscribers.

source: VZW & Bloomberg


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16 Comments

1. i3izkit311

Posts: 31; Member since: Oct 17, 2011

I don't think this is good news for the consumer - both with their net loss and their percent of revenue via data...

3. remixfa

Posts: 14605; Member since: Dec 19, 2008

their net loss had nothing to do with growth and/or churn. if you read the article it was because of an internal adjustment on employee benefits.

6. sumdude

Posts: 50; Member since: Oct 20, 2011

I think your right, unfortunately. I think corp. is gonna put the axe on unlimited plans in the very near future. If they do and are without an impending quad core or Galaxy 3 slated for release on Big Red. Sayonara, I'll opt out of my 2 yr, $3,000+ contract. No phone is worth that kind of moolah.

2. secondcor517

Posts: 94; Member since: Oct 06, 2008

How can you not think the data revenue is great? It was up 19% yoy. You're an idiot if you don't think thats awesome.

4. sumdude

Posts: 50; Member since: Oct 20, 2011

He means great for Verizon, not great for consumer pocketbooks.

5. cnwwyo

Posts: 126; Member since: May 26, 2011

so they have to subsidise i-crap to sell them or am i reading it wrong?

14. cnwwyo

Posts: 126; Member since: May 26, 2011

looooool

7. jamrockjones

Posts: 345; Member since: Oct 26, 2011

Verizon has a whole heap of customers!!! Image if every other carrier went out of business but Verizon and At&t, they could charge or do whatever they want. It make complete sense that At&t wasn't able to buy T-Mobile. that's why I'll stick with Sprint, We need power to be more level between the larger carriers, plus unlimited data, and I don't want to pay all that money for only 2GB of data.

8. rcrider4

Posts: 118; Member since: Nov 14, 2011

I agree. I am with sprint and it is definitely the best value. I am getting for $70 what you can't even get with other carriers, and if you could, it would cost a fortune

9. torr310

Posts: 1670; Member since: Oct 27, 2011

or with T-Mobile alternatively

10. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Sprint is a good deal but I am going to be switching to Tmobile in the near future. I would rather pay upfront for a phone and get cheaper service overall that way like the Europeans do. Maybe if people pay $500 instead of $200 for a phone they would treat it more carefully and with more respect.

11. networkdood

Posts: 6330; Member since: Mar 31, 2010

I gave Verizon 3 lines - I am happy with my DROID RAZR - SPrint customer with an iphone - enjoy the speed...lol

12. letsb4real25

Posts: 21; Member since: Dec 28, 2011

I agree with you...i took my three lines from Sprint to Verizon and the saying is true you get what you pay for especially in terms of service. I have two Rezounds and a iPhone and I don't regret my decision. The way carriers have brainwashed people to think they actually need unlimited data is crazy. I got the 4 GB promotion that they were doing for LTE phones and I barely use 1 GB/mo. Grant it I have broadband at home and I leave my phone's wifi on but I am still a heavy user while I'm away. Unlimited is overrated.

13. btbotimtim

Posts: 272; Member since: Dec 08, 2010

You didn't change that 4GB to unlimited? I have 5lines with verizon. I bought it on Thanksgiving penny sale on Amazonwireless. Rezounds and RAZRs at pennies. Right after, I added wifi hotspot and removed it. Got unlimited data. Never need to connect it to wifi. Other carriers 3G/4G cannot be competed against verizon's LTE.

15. lsutigers

Posts: 832; Member since: Mar 08, 2009

DOOD get your facts straight. Most of the Sprint data speed issues that VZW and AT&T also experienced when they first started carrying the iPhone have been resolved. Of course, there are still some issues but Sprint is working very quickly on this. Within the last few months, 3G data speeds have increased in my area to an average of 1.2mbps. Letsb4real25, like you, I did the opposite, switched from VZW to Sprint and couldn't be happier. The service is very comparable and the price is much lower. I used to work for VZW so I know their marketing tactics and how their employees talk to customers (anything but Verizon is garbage). While VZW is good, they do have dead spots like every other carrier, my Sprint phone works just about everywhere my VZW phone did.

16. letsb4real25

Posts: 21; Member since: Dec 28, 2011

@btbotimtim I didnt know, if so I would have done that. I did get the Rezounds for a penny but I had no idea they would let you keep the unlimited if you removed the hotspot feature. @Isutigers Don't get me wrong I had about eight good years with Sprint. Then around summer of last year the local network turned to garbage. I called and called. had an airave sent out to my apt no service at my job after a specific time. I think the network had become overloaded. Don't really know but I was also interested in actually being able to use 4G although I had a 4G phone on Sprint since the original Evo and never really got to use it because my city didn't have it and still doesn't. Talk about a waste of money...now aside from rare outages, Verizon's 4G is pretty much everywhere I go.

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