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Thread: Verizon May Owe Apple $14B Over iPhone Sales Shortfall

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    MMi Staff Writer Michael Essany's Avatar
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    Default Verizon May Owe Apple $14B Over iPhone Sales Shortfall


    The nation's largest wireless operator may owe Apple an astounding amount of money due to a pretty dramatic iPhone sales shortfall.

    According to an investment research firm’s analysis of SEC filings, two out of every five smartphones sold in the U.S. this spring were iPhones. But that may still be insufficient to save Verizon from having to shell out a large sum of money to Apple for not selling an adequate number of devices to prevent the anticipated sales shortfall.

    Verizon must sell $23.5 billion worth of iPhones this year to meet a commitment the carrier made to Apple three years ago.

    Because of slower-than-expected sales, Verizon now must double its iPhone sales of last year. If it falls short, the company could be on the hook for as much as $14 billion, Moffett Research said in a report released this week.
    “It is likely that Apple would be reluctant to simply ignore these commitments, since many other carriers around the world are probably in a similar situation, and a simple amnesty would set an unwanted precedent,” the research firm wrote, according to the L.A. Times. “It is therefore unrealistic to think that Apple won’t extract some consideration for renegotiating these shortfalls.”

    With AT&T, Sprint, and T-Mobile among the U.S. carriers that Verizon now has to compete with on iPhone coverage, it may not get any easier for Verizon to hit its established sales targets.

    Source: L.A. Times

  2. #2
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    Galaxy S4 & HTC One to the rescue.

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    Livin the iPhone Life
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    Whomever estimate Verizon can sell that many iPhones better be fired, that is a HUGE over estimate!
    Not even early release of iPhone 5S to Verizon first can save them now...

    Every other carrier better start looking over their numbers and adjust contract appropriately.

  4. #4

  5. #5
    Quote Originally Posted by unison999 View Post
    Whomever estimate Verizon can sell that many iPhones better be fired, that is a HUGE over estimate!
    Not even early release of iPhone 5S to Verizon first can save them now...

    Every other carrier better start looking over their numbers and adjust contract appropriately.
    You have to realize, back then the smartphone market was only going to go up. Nobody thought it would level off this fast. If carrier's would allow upgrades to new phones from the same company (4 to 4s, 4s to 5) smartphone sales would probably be a little higher. I know I would upgrade to every new iphone if I could. AT&T used to let you upgrade iphones when apple came out with a new one.

    Carriers could also allow upgrades to be allowed after a year. I know att makes enough money to allow this. This would give the smartphone market more growth again.

    EDIT: You should only be able to upgrade to the latest and greatest phones after a year though.

  6. #6
    When did this forum become Android haven?

    Verizon needs to get some better rates/plans. I'll likely get Verizon when the new iPhone comes out and I'll be dropping both T-Mobile and Sprint and dropped AT&T 2 years ago. If Verizon sucks too I guess I'll start over?!?

  7. #7
    U guys think a yearly upgrade would increase sales?

    Quote Originally Posted by REMED1AL View Post
    When did this forum become Android haven?

    Verizon needs to get some better rates/plans. I'll likely get Verizon when the new iPhone comes out and I'll be dropping both T-Mobile and Sprint and dropped AT&T 2 years ago. If Verizon sucks too I guess I'll start over?!?
    Lol about the android thing. But where I am out in pa. Verizon doesn't suck service wise or customer service wise.

  8. #8
    Quote Originally Posted by Scotty Manley Silberhorn View Post
    You have to realize, back then the smartphone market was only going to go up. Nobody thought it would level off this fast. If carrier's would allow upgrades to new phones from the same company (4 to 4s, 4s to 5) smartphone sales would probably be a little higher. I know I would upgrade to every new iphone if I could. AT&T used to let you upgrade iphones when apple came out with a new one.

    Carriers could also allow upgrades to be allowed after a year. I know att makes enough money to allow this. This would give the smartphone market more growth again.

    EDIT: You should only be able to upgrade to the latest and greatest phones after a year though.
    You can upgrade every 6 months on AT&T. I get every iPhone. You can either sell your older iPhone to pay for it, or trade in and get a little money. I upgrade once a year for the newest iPhone. Not that I need the latest version. My phones are always under warranty, & it cost me nothing.
    If I can't mod it...I don't want it.

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    Livin the iPhone Life bigboyz's Avatar
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    Only one company had it good with the iPhone and that's AT&T. Obviously exclusivity pays BIG dividends. As for the comment above, those two phones will never rescue any company. The #'s speak for themselves.

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    Livin the iPhone Life steve-z17's Avatar
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    That's a lot of keesh!

  11. #11
    And I bet they will find a way to charge the current customers, to foot the bill.

  12. #12
    Wow!!! 14 billion big ones... Just give me a million of that and I'm good 😉

  13. #13
    Stop telling stories AT&T is the last company that will let you upgrade every six month.
    Black iPhone 4 32G jail-broken iOS 5.1 R.P

  14. #14
    Verizon should respond by lowering the cost of its data plans - that would certainly push an iPhone into my hands.

  15. #15
    My iPhone is a Part of Me vinaygoel2000's Avatar
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    Quote Originally Posted by Jahooba View Post
    Verizon should respond by lowering the cost of its data plans - that would certainly push an iPhone into my hands.
    Verizon lowering cost!! Like that's gonna happen.

    Quote Originally Posted by sirbebe View Post
    Stop telling stories AT&T is the last company that will let you upgrade every six month.
    Read his post one more time.

  16. #16
    What a joke

  17. #17
    what a joke, just the fact iPhone can't keep up with all these new smartphones that's why VZ couldn't meet the commitment

  18. #18
    Maybe this will make up for the money they owe amazon?

  19. #19
    My iPhone is a Part of Me vinaygoel2000's Avatar
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    Quote Originally Posted by holyshnikes View Post
    Maybe this will make up for the money they owe amazon?
    What???

  20. #20
    Honestly I couldn't see anything major happening from this. Although maybe they should of thought of that when they had customers coming into their stores looking for iPhones and were strong armed into getting Androids because a better commission.

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