Verizon announces Q2 2012 financial results, 2.7 million iPhones sold

Verizon announces Q2 2012 financial results, 2.7 million iPhones sold

Verizon has reported their Q2 2012 financial results, and the iPhone accounted for 2.7 million, or roughly 45% of the 5.9 million smartphones Verizon sold. Operating revenues were $28.6 billion, up 3.7% year over year, and wireless service revenues were $15.8 billion, up 7.3% year over year. Verizon chairman and CEO Lowell McAdam said:

Verizon delivered another strong quarter of earnings growth and cash generation, and we remain on track to meet our financial objectives and produce solid double-digit earnings growth for the year. Verizon Wireless has once again demonstrated its industry leadership, combining strong revenue growth with record margins and high customer loyalty. We reported sequential improvement in second-quarter Wireline margins, and we expect to see that improving trend carry through the second half of the year. We also look forward to the closing of strategic transactions and to the integration of process improvements that will set the stage for continued long-term profitable growth across all our business units.

The iPhone remains a huge success for Verizon. Even though both absolute number of units sold, and percentage of smartphones the iPhone accounted for, were down, it's more than halfway through the iPhone 4S product cycle. Given that the 2011 iPhone 4S doesn't have LTE, which is Verizon's clear focus right now, and the focus of many competing handsets, and given Verizon's CDMA network is nowhere near as fast as it is reliable, the iPhone is once again exhibiting remarkable longevity.

Of the remainder of smartphones sold, Verizon said some 2.9 million, were "Droids", but that seems like it must certainly refer to Android phones in general, and not Droid-branded phones in specific, given the popularity of the Samsung and other non-Droid branded lines.

It's interesting that 45% of smartphone buyers on Verizon are opting for a 8 month old iPhone 4S or 24 month old iPhone 4 over far more modern, bigger screened, Android handsets, and that very few are opting for what little BlackBerry and Windows Phone handsets Verizon currently offers.

The expected iPhone 5 launch in October and holiday quarter should, like last year, be much, much stronger for Verizon. During the conference call, they alluded to something special coming round about then, but given the launch of Windows Phone 8, and perhaps new Android, it's pointless to intuit too much into vague statements like those.

Press release, conference call audio, presentation slides, and more are available via the link below.

Source: Verizon

Rene Ritchie

Editor-in-Chief of iMore, co-host of Iterate, Debug, Review, The TV Show, Vector, ZEN & TECH, and MacBreak Weekly podcasts. Cook, grappler, photon wrangler. Follow him on Twitter and Google+.

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There are 12 comments. Add yours.

kch50428 says:

The LTE iPhone will sell like nothing they've ever seen to date.

mtcowdog says:

This. I don't know whether I will get the next iPhone or not, but apple would have to ship a complete disaster of a device for an LTE iPhone to NOT sell like crazy on Verizon. For starters I expect it will have the best battery life for an LTE device and be the only high-end smart phone at the smaller end of the physical size spectrum.

jmecca09 says:

What VZW doesn't want you to know is that they actually discourage their reps from selling the iPhone.

SoggyTempura says:

Off-contract iPhone costs the same as an Off-contract Android. The only way I see this being a 'factual' statement is the idea that iPhone doesn't have the mediocre VZW apps pre-built in, which I suppose could be a good revenue stream for those people dumb enough to subscribe to them.

mikeram112 says:

The thing is is that apple charges alot more to purchase the iphone than a simple android phone, the profit on an iphone that verizon / sprint / AT&T make on the iphone is almost half of the profit they make on android and other phones. I work at sprint as sales and the gross product i get for selling an iphone is nothing compared to selling an android phone or even a basic phone because the cost of the iphone is so much higher

OrionAntares#CB says:

Actually it has to do with manufacturer deals. The phones that get pushed by sales staff have a better commission offered on them, likely because VZW has a better contract deal for their cost with the manufacturer.

jmecca09 says:

It is a factual statement. I used to work there. Verizon's 3G network is overloaded and they are pushing for everyone to go 4G.

aaimbrogno says:

It's true, the reps have to sell a certain amount of 4G phones every month (or certain percentage) and they get more commission for them.

rustymini says:

I agree. They talked about it like the coming of the antichrist.

Mac58 says:

2.9 million > 2.7 million... I'm just saying lol
Funny how the exact same article can be posted on two different sites owned by the same company and get two completely different stories. If I hadn't read the article on ac I wouldn't have known more androids were sold compared to Iphones by the way you disguised the info here. Good job Rene!

Cat Hat Man says:

until they stop giving us bullshit about updates and locked boot loaders on android im sticking with the 4s, which is probably going to be a very long time.

Mac58 says:

Get a Nexus..... simple