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Verizon Says iPhone Has Had Minimal Impact

Monday, July 28th, 2008 at 4:40 PM - by

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.

6 comments from the community.

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A guest said: (hide)

Mon Jul 28, 2008 7:37 pm

cough, Bull S^*%, cough

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MOSiX Man said:

member since 20 Jun 2001 with 558 posts, unranked, send him a message or view his profile

Mon Jul 28, 2008 8:26 pm

Yep. What he said.

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A guest said: (hide)

Mon Jul 28, 2008 9:13 pm

Well, you gotta consider that it was only released a couple of weeks ago, earnings reports are usually delayed by a quarter. Now, if they keep spewing this crap next quarter... then it'll be clear they're talking out their a$$e$...

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Tiger said:

member since 17 Jun 2003 with 1018 posts, unranked, send him a message or view his profile

Mon Jul 28, 2008 9:51 pm

Seventeen days in, I'm sure it's had minimal impact.

Will Verizon be able to repeat that statement 90 days from now? 180 days? 365?

I bet they feel stupid for passing on the iPhone. Even worse, they could have been partnered with Apple and AT&T an not even had to have an "exclusive" contract. The consumers would have gained even more out of that sort of deal.

But NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!

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A guest said: (hide)

Mon Jul 28, 2008 11:40 pm

Obviously, Verizon doesn't miss me as a customer.

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ctopher said:

member since 25 Aug 2006 with 134 posts, unranked, send him a message or view his profile

Tue Jul 29, 2008 9:51 am

Versions probably has more PoPs (Plain Old Phoners) than OPs, WIAs and RWs (Organized Phoners, Want It Alls and Road Warriors) so the iPhone may not affect their bottom line much. In fact, the news here is that they even mentioned it. Perhaps to they show up in web searches and get more attention? (Or was the iPhone a response to a question?)

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