Verizon Communications Inc. (NYSE:VZ) announced its quarterly earnings today and told that it activated approximately 4 million Apple Inc. (NASDAQ:AAPL) iPhone units; half of them were 4G LTE devices. The iPhone 5 is the only phone from Apple Inc. (NASDAQ:AAPL) which can run on 4G LTE network. This implies that Verizon has activated approximately 2 million iPhone 5 units.
The total phones added by Verizon this quarter stood at 7.2 million. Out of total, 28 percent was added by the new customers of Verizon. Verizon altogether sold 9.7 million devices on a contract basis.
Apple Inc. (NASDAQ:AAPL)’s 55 percent share in the Verizon smartphones saw a decline in the quarter by approximately two-thirds of activations, which iPhone managed in the holiday season. The decline was obvious as iPhone 5 was launched in the previous quarter and the price of the iPhone 4S and iPhone 4 was trimmed.
Verizon Communications Inc. (NYSE:VZ) did not show any alteration in its share of Apple Inc. (NASDAQ:AAPL) iPhone activations, and total activation represented around half of all Apple Inc. (NASDAQ:AAPL) smartphones in the United States. The largest national carrier activated 9.8 million total smartphones in the holiday season. In the previous quarter the total amount of iPhone's sold by Verizon were 6.2 million, which was an increase of 48 percent from the last year’s figure. But of those, iPhone 5 sales were only 3.1 million.
Verizon Communications Inc. (NYSE:VZ) in its latest data raises concerns over dwindling performance of the iPhone in the wake of tough competition from the likes of Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930). But Apple Inc. (NASDAQ:AAPL) continues to dominate by accounting for more than half of total smartphone sales in the United States at the two most dominant carrier partners. In the previous quarter, Apple Inc. (NASDAQ:AAPL) accounted for 84 percent of all smartphone activations at AT&T Inc. (NYSE:T), the other carrier.
The earnings of Verizon Communications Inc. (NYSE:VZ) for this quarter came in at 68 cents per share on revenue of $29.4 billion, which is an increase 15 percent year over year basis. The carrier activated 5.9 million 4G LTE devices and added a net 677,000 new contract subscribers in the quarter.
Lowell McAdam, Verizon Communications Inc. (NYSE:VZ) chairman and CEO of Verizon said that Verizon had gotten a great head start. The strategic investment, according to McAdam, in wireless, wireline and global networks has given the company a stage where it can maintain its growth rate and grab the growth opportunities in the significant markets for broadband, video and cloud services.
He said that the company is looking forward to increasing its cash flow and earnings throughout the year by improving its operating efficiency.