Verizon profits up, subscribers up, the world is really all about the iPhone
Goodness knows that there are Marketplace shows other than our own that are highly skilled in bringing you The Numbers and the music beds that go along with them. Tech Report ventures into said space only when there’s a strong user-focused tech angle to that information, as is the case when something happens with Verizon. Of the four major carriers, Big Red is the Paul McCartney of the group and if T-Mobile falls by the wayside, it will become the Sting of the trio. If Sprint fades one day, it will be George Michael or Daryl Hall.
Am I still typing?
Okay, Verizon’s profits were up in its quarterly earnings report and it also showed a growth in subscribers compared to first quarter last year.
The New York-based telecommunications giant posted a first-quarter profit of $1.69 billion, or 59 cents a share, compared with a year-ago profit of $1.44 billion, or 51 cents a share.
Revenue rose 4.6 percent to $28.46 billion.
Analysts, on average, had forecast earnings of 58 cents a share on revenue of $28.17 billion, according to Thomson Reuters.
While the industry has suffered an overall slowdown in customer growth -- particularly on the contract side -- Verizon has remained resilient. The carrier has the advantage of a strong reputation for network quality, and has been able to draw and retain customers through its faster 4G LTE network.
And of course this is all about the iPhone, which Verizon got last year, which is growing like gangbusters inside a house of fire that is selling hotcakes.
Sales of wireless contracts, the most lucrative segment of the business because it locks in monthly payments over long periods, may have shrunk for the first time ever in the first quarter. One big reason for the sharp reversal: Soaring iPhone sales in late 2011 may have satiated consumers’ appetites for wireless plans.
Here’s the deal: Verizon has the iPhone. People prefer the iPhone over other phones. People feel that Verizon is stronger and more powerful than all other carriers. Verizon rules the world.