No iPhone? No Worries: Verizon Wireless Still Growing.
by Peter Kafka
Posted on January 27, 2009 at 5:04 AM PT
Boomtown aside, not every consumer is swayed by the iPhone: Just ask Verizon, whose wireless operations added another 1.4 million customers in the last quarter–despite the fact that the company can’t offer Apple’s wonderphone.
The new numbers come via Verizon’s Q4 report on earnings, which were OK, considering the brutal economy: The company reported earnings of $0.61 per share on revenues of $24.6 billion. Wall Street was fine with the earnings number, but had been expecting slightly higher revenues of $24.74 billion.
Verizon’s wireless growth was slower compared to the year before, when it added two million subs. Perhaps the company could have goosed those numbers with a better launch of its BlackBerry Storm, its would-be iPhone competitor from Research In Motion (RIMM). But despite a good-size media blitz, Verizon (VZ) was only able to move 500,000 units during the last quarter, according to reports.
So if those new customers aren’t buying iPhones–which are exclusive to Apple (AAPL) partner AT&T (T)–and they’re not buying Storms, then there’s a good chance they’re signing up for run-of-the-mill “feature phones.” That’s too bad: Verizon will take growth anywhere it can get it at this point, but it would rather sell high-end phones like the Storm, which generate lucrative data fees for the company.
Comments
Peter, I’m not sure what your point is here, but just because the masses aren’t leaving Verizon doesn’t mean that its not happening. Slowly but surely. But 5 million customers a quarter is a deadly amount, kinda like cancer, you hardly detect it until it is too late…kinda of like Microsoft with the zune….get it? I am a verizon customer and I will be switching to the iPhone later in February, and so have about 20 of my friends and family. Ever tried web browsing on a Blackberry? Compare it to the iPhone and you’ll realize how precious your time is. Web browsing on a BlackBerry is useless, absolutely useless and a waste of paying the data fees. So in the end who wants a half-ass solution? Not many other than the business people who are forced on BlackBerry’s….but check their PDA device for their personal account and you’ll find an iPhone. Sorry Verizon you missed the ball on this one and I wouldn’t say your profits are like Apples!
Posted by Gray Davis at January 27th, 2009 at 8:29 amI hoped my point was clear: Verizon is still signing up new subs, even w/out the benefit of a killer phone.
Posted by Peter Kafka at January 27th, 2009 at 10:50 amDon’t get the Zune parallel: Microsoft came late to the market and could never catch up. Verizon’s already a big player.
But yes, iPhones are really good. So are BlackBerry’s IMHO. We have both in our house.
I am and always will be number 1 fan of all Apple…
I’ve been waiting and wanting an iPhone since it was just a rumor. I was so excited I told everybody I was gonna get one. However I had to jump ship on getting an iPhone. I will not be dependent on an Apple rep to change a cell battery. I been changing my own battery on my own just fine. This don’t fly with me at all, especially with identity theft being on upraise. I don’t know who is hire in retails these day. It will be my luck I handed over my iPhone to a disgruntle employee. You hear this crap all over the news every day, about employee stealing company information for their own personal gain. It’s nothing new at all. It’s happening NOW as you read this. Big issue here as well is you just can not walk in with iPhone battery problems, you must make an appointment with an Apple Genius. Which adds even more DOWN time of you cell phone use. What next? I have to go to Athletic Footwear to have them replace my shoe lace of my sneakers, cause I bought it from their store?????? Please! Find another SUCKER! At least with an LG Dare your guaranty ZERO down time if you ever had battery issues. Because you can change it your self. I don’t care to own an LG Dare or any of the smart phone Verizon are offering. I want an iPhone that I can change my own battery. France implemented a law that all hand held device must have a removable battery. So I hope this will be just the think to get my dream iPhone soon.
Another issue at hand is the in NYC it’s THE LAW to use hand free dialing. So I use voice dialing like ten thousand times a day. I been using voice dialing for 22 years on so many CHEAP FREE phone. Hmm.. Why should anyone be looking toward the App Store to get sh*t it should already have in it? Shouldn’t the App Store be for innovative Apps? Voice Dialing isn’t innovative and shouldn’t be in the App Store. It’s like offering a phone with out a dialing capability, so now you will have to go to the App Store to download a dialing App to make Calls. Hello! It is 2008 isn’t it?
That is the only reason why I am still with Verizon, I will leave Verizon in a heart beat when a removable battery in capable on a iPhone is out on the market. I have why to many personal information in my current cell. After all it is my own personal cell, why shouldn’t I be able to put personal content in it. With the current iPhone I wouldn’t even dare to do so.
Posted by Angel Kingston at January 27th, 2009 at 11:39 amI bought a Storm the day they came out in late November. Verizon extended the “30 day trial period” to Jan 15th, well beyond the end of the 4th quarter. I really wanted to like the Storm but was so disappointed. I returned it Jan 10th and reactivated my on Palm. I will be jumping to Sprint whent the Pre is released. I suspect that there are going to be many many Jan returns of the Storm.
Posted by bill hanzlik at January 28th, 2009 at 4:51 amBill, you do have good eye for awesome gadgets, The Palm Pre is a beauty. Kinda remind me of the iPhone, so much so I actual said I would get it. Now here is the explosion! It is only through Sprint, Bill they are having so much issue internally and externally. It’s like being in a psycho relationship. Bill I encourage you to look at the thousand of negative press Sprint has all over the internet. New York Times them self wrote a nasty review about them. Customer service from HELL! Constant billing errors, that you will have to dedicate 3-4 hours monthly too get them resolved. Now on to the Palm Pre, Apple’s CEO Tim Cook is looking into the Pre that almost directly emulates the kind of touch interface found on the iPhone. This is important on so many level. Because if Apple’s CEO Tim Cook team of lawyers find that it does. Well Palm Pre will have to change.
Posted by Angel Kingston at January 28th, 2009 at 1:12 pm