Verizon Communications Inc. (NYSE:VZ) reported their first quarter on Thursday. They sold 3.2 million iPhones within the last three months. This number increased their net income to $3.91 billion – a figure that increased significantly from last year’s $3.26 billion.
This new information came along with the announcement that they sold 2.1M 4G LTE phones while gaining 734,000 more customers.
Sales for the iPhone have dropped just a little since many Apple fans are patiently waiting for the arrival of iPhone 5, which is expected to arrive in the fall.
The earnings per share for Verizon is $0.59 cents per revenue of $28.2 billion. It’s also important to note that this company, like most cell phone carries, subsidizes their most in-demand phones and in turn makes a profit from contracts.
The iPhone 4s launched in October of 2011 and much like it’s predecessors, it has been a huge success. Verizon is a popular carrier and as a result, they were not able to fulfill all their orders when they launched the latest version of the iPhone last year. Just this last quarter, Apple sold well over 37 million iPhones. Over half of Verizon’s mobile phone sales derived from iPhone sales.
Verizon is a smart company and they know how to make a big profit. They may not have the best customer service or the best business practices, but as long as they have the right products and services, they should continue to dominate the wireless industry. They are currently the only phone service on the market that offers 4G LTE, the fastest in mobile internet. The service is currently limited to 203 cities in the United States but Verizon is working hard to continuously expand their services in order to reach everyone. They also have 3G services.
I think Verizon is on to something good and that will only benefit the company in the near future.