Verizon Releases Q1 Reports – iPhone Represents Revenue Increase

iphone and verizon 2 Verizon Releases Q1 Reports   iPhone Represents Revenue Increase

The holiday season brought in new profits for Verizon Communications, as holiday shoppers clammored for the iPhone 4S. Today, Verizon announced their earnings for the first quarter of the year. Once again, the Apple iPhone represented over half of smartphones sold.

The holiday season brought in new profits for Verizon Communications, as holiday shoppers clamored for the iPhone 4S. Today, Verizon announced their earnings for the first quarter of the year. Once again, the Apple iPhone represented over half of smartphones sold.

iphone and verizon 2 Verizon Releases Q1 Reports   iPhone Represents Revenue Increase

The iPhone sales did not represent an immediate increase in profit for Verizon. Selling the iPhone 4S 16 GB at $199 or $99 would represent a very low profit or even a loss for the company. After selling the device for low prices, the real money is made off the customers who have signed onto cell phone contracts.

According to Thursday's first quarter report, monthly bills for subscribers on a contract based plan were at $55.43 which is 3.6 percent more than last year. The original figure was dormant several months earlier, showing the iPhone's effect on business. Along with the increase in bill costs, Verizon's revenue has also increased by 4.6 percent. This totals $28.2 billion, as opposed to last year's $27 billion.

This quarter, Verizon is expected to lead the industry, having sold 501,000 contract based plans which is more than analyst predictions. This is twice as much as is expected from Verizon's competitor AT&T Inc., which will release first quarter reports on Tuesday.

The tendency of Apple's iPhone to increase wireless sales is being called the "iPhone effect". In this past quarter, the iPhone (4 or 4S) has sold no less than 3.2 million units, making it their most popular device period. 

Reference: USA Today

Brandon is an A+ certified technician and freelance writer living in East Tennessee. He loves God, writing, science (especially technology) and philosophy. He is currently preparing to enter the field of information security.