Verizon Sold 6.3 Million Smartphones In First Quarter
Verizon Wireless said on Thursday that it sold 6.3 million smartphones during the first quarter of its year.
The company said that overall, iPhones made up more than half of Verizon’s smartphone sales during the quarter.
About 20 percent of smartphone sales were new Verizon customers, while the rest were contract upgrades. Forty-two percent of the contract upgrades were people buying smartphones for the first time.
Verizon said it sold 500,000, or 30 percent, more 4G LTE smartphones this quarter, compared to the previous quarter.
The nation’s largest carrier said that Verizon sold 4.2 million of Apple‘s latest iPhone 4S devices during the fourth quarter of 2011.
Verizon said about 501,000 new post-paid customers and 233,000 pre-paid customers were added during the quarter as well.
Among those customers who are pre-paid users, 138,000 bought tablets and 60 percent of those tablets that were purchased were 4G LTE devices.
The quarterly results come after Verizon announced that it would be expanding its 4G LTE service to 230 metropolitan areas across the U.S.
Verizon claims its high-speed network averages 5 to 12 Mbps download speeds, which is about 10 times faster than 3G networks.
It said by the end of 2012 that LTE services will be accessible in 400 cities across the U.S., reaching over 260 million people.
Despite the expanding coverage of its 4G LTE network, the majority of its smartphone sales were still the 3G network iPhone 4S.
Verizon said that the average monthly bill for the customers was up 3.6 percent from a year ago to $55.43.
Part of Verizon’s growth in revenue was because it introduced a $30 upgrade fee for its customers upgrading to a new phone.
Apple is expected to report sales of around 30 million iPhones in its quarterly earnings next week. However, Mike Walkley of Canaccord Genuity believes that Apple’s iPhone sales are able to find a speed bump.
BGR reported that Walkley said iPhone 4S sales will modestly start to slow down as demand for an LTE iPhone 5 starts to ramp up.
“We have lowered near-term iPhone unit estimates, but we have increased our F2013 iPhone estimates as we anticipate very strong demand for an LTE iPhone 5 ramping during the December quarter,” Walkley told BRG.
The next-generation iPhone will launch sometime in the third calendar quarter, according to Brian White of Topeka Capital Market and the BRG report.