Verizon sells 2.2 million iPhones in Q1, profit margins drop, customers increase

Verizon sells 2.2 million iPhones in Q1, profit margins drop, customers increase
Verizon just posted a solid, but not stellar quarter. Some analysts hoped that it will sell much more iPhone 4s than the 2.2 million it did, but it's still an excellent number for the two months or so since Apple's finest appeared on the Big Red network.

What the iPhone 4 did, though, is a negative impact on the gross margin, which fell to 43.7% from 46% in last year's Q1, sending Verizon's shares down 2%.

This is due to the higher subsidies Verizon outlays for the iPhone to Apple, compared to other high-end smartphones, hoping to recuperate these costs over the life of the contract with higher-margin data services and the like. This boost won't come until later in the iPhone 4 users' contracts, though, so for now Big Red is subsidizing for glory.

What the influx of the millions that have been waiting for a Verizon iPhone since 2007 meant for the carrier, is an increase in postpaid subscribers with 906 000, which is actually only slightly more than what it achieved in Q4 of 2010, but well ahead of AT&T's 62 000 number.

Verizon made $1.44 billion, on revenue of $27 billion, which is only slightly less than what it took in for the same period last year, when it had a lot of capital expenditures and one-time charges. Things should get more interesting if the AT&T/T-Mobile merger is approved, and when AT&T's LTE network kicks into operation. As far as LTE phones go, Verizon sold 260 000 units of the HTC ThunderBolt, not bad for a handset that's been out only for a month, swimming alone in the warm waves of a spanking LTE network.

source: Verizon

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36 Comments

1. WDCJ unregistered

Verizon>AT&T

6. Tre-Nitty

Posts: 470; Member since: Nov 16, 2010

ATT>your entire life. How are you gonna knock something like a multi billion dollar empire like you have 1. I hate to inform you but ATT had nothing to do with this. You do realize that nobody with Verizon even cares you exist. Stop rooting for a billion plus dollar business over another because they don't root for you, just your $.

15. Dsimpson unregistered

And why are you hating on someone who actually has good things to say about a cellular network? Do you have absolutely no life yourself that you need to go on Phone Arena and bash a person because of this? Go get a life troll

17. WDBJ unregistered

Tre Nitty is probably a "loyal" AT&T customer who likes using his capped data and their "great/reliable" coverage. I wonder if he has seen their 4G speeds compared to Verizon? If he hasnt, i would be more than happy to share a few links with him/her...

18. remixfa

Posts: 14605; Member since: Dec 19, 2008

ATT 4g is less than metro4g :) What i think is odd is that ATT is going to turn off Tmobile's 4g network which is now residing at 42mb/s to switch it to LTE which is actually a bit slower (for now), and leave on their crap ass "4g" network that caps at like 12/mbs. I realize its for the spectrum, but it just doesnt make much sence when u look at it. :)

24. Tre-Nitty

Posts: 470; Member since: Nov 16, 2010

Sorry have a life, a great 1 at that. Troll, hmmm I have a registered account here because I like to keep up on the new fresh phones. Now you, Mrs unregistered, you seem like the troll. To wdbj, sorry I have Verizon(work) and ATT and Verizon is slow as shit. Without LTE they clearly have the slowest data by far. You get 10 down on Verizon, I get 4-6 down on my 3g with ATT. So please don't start talking about speeds.

27. Dsimpson unregistered

Oh my god! I dont have a registered account?? Im such a troll! Just because I like to go to this website, DAILY I might add, and read, doesnt mean I have to be registered... I chose not to register because, unlike you, I dont need everyone knowing my opinion. And believe me, if my opinion was anything like yours, I would not have registered to begin with...

28. WDBJ unregistered

Why are you with a company that your gonna hate on??? My recommendation is to go to AT&T and hop on their "4g" bus and compare speeds. Id rather be w a company that actually has real 4g, as opposed to some companies that have to purchase other carriers just to exist, a crutch if you will.... so talk the bs. The "at least im registered" talk sounds as if your incompetent btw

35. tragichero

Posts: 163; Member since: Jan 07, 2011

hahahaha trenitty your such a tool! no one likes you or what you have to say. hahahahahahah

2. clevername

Posts: 1436; Member since: Jul 11, 2008

Well I guess that answes the thunderbolt versus iPhone question. The iPhone sold an average of a little more than a million a month. The thunderbolt sold about a quarter of that. Looks like thunderbolt won't even hit a million for another 3-5 months considering sales only slow down for any handset as time goes on. Not trying to promote apple here so please don't start bombing me angry fandroids. Just interpreting the numbers.

3. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Poor Verizon customers if they only knew Apple is keeping track of where they go every day. Also that anyone with access to their iPhone or computer can find out your patterns & be there before you get there. Apple is totally out of their minds! I hope no one is out to get any of those 2.2 million people cause Apple makes it so easy for that to happen! I hope none of those 2.2 million people find out can write some outraged emails to Apple. Want to track someone, buy them an Apple iPhone, & for free Apple will do the dirty work for you! lol

5. davecann2

Posts: 460; Member since: Mar 15, 2011

Google has been doing worse to its costomers for a lot longer.

7. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Google is a search engine, they tally all the searches people make by default. Apple hands out your location to a T on a silver platter. Last time I check Google is not on that level! Get a grip. And when the Government was upset at Google for putting sensitive images & information they corrected it with the quickness of an Android phone on a 4G network. Looks like the iPhone 6 will make that claim, by then Apple should have stopped giving away their customers location. By then they will be charging to track people on their iTunes store. It will be called iTrack store! lol I hope Apple pays me for this. I will file a patent so they don't steal my idea & then take me to court. Apple…… lol

8. davecann2

Posts: 460; Member since: Mar 15, 2011

Wow...just wow... I am speachless.

9. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

You know you like it! It was funny right! Sometimes there forums get a little too stale. We need to have fun with this! :-)

10. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

lol sorry these!

12. davecann2

Posts: 460; Member since: Mar 15, 2011

lol... actually I did get a little chuckle out of it...lol...just a little one! I like your attitude.... Can an iPhone fan boy befriend an Android fan boy? Where has the world gone!!!

13. Kjayhawk

Posts: 294; Member since: Oct 07, 2010

No!! We have to argue! Stop getting along superandroidevo was calling you gay behind your back davecann2!!! Yeah it was.... at Cinndy's house before we left for prom!

16. davecann2

Posts: 460; Member since: Mar 15, 2011

hahaha Damn yi=ou Android fanboys!!! Damn you all to hell!!

20. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Damn Apple!!!!!!! The only Apple I like is a Granny Smith Apple!!!!!!! lol

19. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

Yes I think this can happen. I own a cat & a dog, they are best of friends. And they said it would never last! lol Plus I like a Big Mac just the same a Whopper! Call me crazy. I like both Coke & Pepsi..................... lol I go on this site to have fun, & to try to make some good points. I don't hate anyone. davecann2 your a good guy, now 530gemini he is in a league by himself! lol

33. jbash

Posts: 345; Member since: Feb 07, 2011

lmao. the only joy apple brings me is the fact that PA will post an article about them and 530gemini will be there for my entertainment.

21. protozeloz

Posts: 5396; Member since: Sep 16, 2010

My answer is YES!!! we can get along :P when we argue with each other like no other we a secretly telling ourselves how much we love that the other exist.... imagine how boring our life would be if there was only android or apple XD

36. tragichero

Posts: 163; Member since: Jan 07, 2011

lol... thats so true.... watching it on the news.... poor att customers too.... anyone with an iphone. i spent an hour today trying to talk this tool out of getting an iphone and explained over a hundred reasons why not to get an iphone opposed to a droid and he openly admited that he is doing for the fact that its a status symbol. a self aware tool!!! lol

4. super 84 unregistered

What would happen when they.come as one i just don't get it for Verizon will it hurt them because wouldn't both companies be on LTE

11. Gawain

Posts: 437; Member since: Apr 15, 2010

What? I've been asking that question a lot lately with regards to some of the thoughts posted around the place... What the hell does that mean? "...when they.come as one i just don't get it for Verizon will it hurt them..."...the only response I can think of to this is: "All your base are belong to us." Hope that answers your question. :-/

14. WDBJ unregistered

Excuse Tre-Nitty let me rephrase... AT&T=Sucks

22. captn3x unregistered

The middle class that are buying the bulk of these phones are in a battle to keep there $60,000 per year jobs and Verison is so disatisfied with there 1.44 billion dallor profit that they need to eliminate 1year contracts to lower subsidy losses....I hate being addicted to tech. or I would tell them all to screw off. I might look to Sprint though.

23. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Yeah, Verizon's profits dropped because Apple keeps all of the profit for their phones to themselves. I'd say for the Thunderbolt to sell like it did against the iPhone, especially when it's known other LTE phones will be out, is pretty fantastic.

25. taco50

Posts: 5506; Member since: Oct 08, 2009

I think Verizon know what they're doing and wouldn't have gotten the iPhone unless they thought they'd make a lot of money from it. Second how exactly are you interpreting these numbers as a success for the Thunderbolt? It sold 260,000 while being the only 4G phone in 1 month. iPhone which isn't 4G and was already 8 months old when it launched sold an average of 1.1 million per month. Looks like a clear cut win for the iPhone. To recap your logic: iPhone sold 2.2 million phones which is bad for Verizon's business Thunderbolt sold 260,000 which is IMPRESSIVE Wow just wow

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