Verizon Points to Strong iPhone Sales in Q4 Earnings Report
On Tuesday, Verizon reported earnings for the fourth quarter of 2012. Despite a revenue spike of better than 5%, the company endured a $4.23 billion loss, primarily in response to charges from its pension plan, debt-related costs and superstorm Sandy damage.
One of the brightest spots in the report for Verizon was the strong performance by Apple's iPhone during the holiday quarter. The iPhone claimed nearly two-thirds of the 9.8 million smartphones sold by Verizon during Q4. All told, the iPhone outsold Android devices by a commanding 2-to-1 margin.
This reality helped Verizon add a record 2.1 million new wireless-contract customers in the quarter. As anticipated, however, margins on wireless services fell during the quarter as subsidies paid on all of those smartphones "were a direct hit to profit."
Nonetheless, Chief Financial Officer Fran Shammo expressed "confidence we can drive top line growth in 2013." Without question, Verizon's 4G push, and iPhone 5 popularity will contribute to the projected growth. During Q4 of 2012, for example, half of the iPhones Verizon sold were iPhone 5 models.