The holiday earnings reports from last year are now being posted by various companies and Verizon for one has revealed that more than half of its smartphone sales from Q4 2011 were solely the iPhone. While this resulted in a revenue surge for its wireless division, there was an overall decline in profits due to heavy subsidies.
Verizon iPhone made up 50% of smartphone sales during the holidays
According to Verizon CFO Fran Shammo in a statement to CNNMoney, Big Red was not worried about the loss and it was foreseen. Verizon expects the “losing streak” to continue right up until 2015. However Shammo quickly comforted investors by adding that profit margins are on the rise and will continue to surge as more subscribers hop on to LTE. There is also the likely event that profits will rise once again if Verizon decides to raise its data plan rates just as AT&T recently did.
More on the Verizon iPhone, the no.1 US carrier reported that they sold 4.2 million iPhones in Q4 2011 which bumped wireless sales by 13 percent or $18.3 billion in revenue. On a side note, the Verizon iPhone 5 is rumored to come with 4G LTE capabilities and will likely follow the same fall release as its predecessor the 4S.