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Verizon Says iPhone Has Had Minimal Impact
Sunday, July 27th, 2008 at 4:00 PM - by .(JavaScript must be enabled to view this email address)
In Verizon’s second quarter earnings report, the company said earnings rose 12 percent. The Apple/AT&T iPhone had a minimal impact on them, according to chief operating officer Denny Strigl.
The report noted that they lost over 11 percent of their landline customers as they steadily moved to wireless and cable-based phones. Verizon also had a drop in its DSL customers as customers moved to FiOS (optic fiber) services which more than offset the loss.
Verizon is another company that appears to be recession proof. Investors had been expecting Verizon to suffer, but the rapid customer moves to wireless and cable phone services offset possible losses.
Mr. Strigl, according to the AP, said the company was "seeing what it believes is a ’minimal short-term impact’ in customer flow due to the iPhone. He also said the effect looks small relative to the size of Verizon Wireless, suggesting that most new iPhone customers who aren’t already on AT&T are coming from other carriers, like Sprint Nextel Corp."
With the recent acquisition of Alltel for US$28.1B, Verizon is now larger than AT&T.
The iPhone 3G, which sold over a million units in its first weekend, was released on July 11, after the close of Verizon’s second quarter. Prior to that, Apple had sold out of iPhone 2Gs in mid-May.
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