Strong iPhone Sales at Verizon (and AT&T)

One last bit for the day on this “iPhone 5 demand is lower than expected” thing. Last week, Verizon made a preliminary announcement on its holiday quarter:

Verizon this morning said in a filing with the SEC that its Verizon Wireless unit expects to report Q4 retail postpaid subscriber net adds of 2.1 million, with 9.8 million smartphone activations, and β€œa higher mix of Apple smartphones”.

Now, it’s possible that:

  • The iPhone 4S could be cannibalizing iPhone 5 sales. Verizon said “Apple smartphones”, not the iPhone 5 in particular. It’s possible that “iPhone” sales are up but that iPhone 5 sales are disappointing.
  • Verizon could be an outlier. Seems unlikely, given how hard Verizon pushes its own Droid-branded phones.
  • AT&T is reporting “best-ever quarterly sales of Android and Apple smartphones”, so maybe it’s the U.S. that’s the outlier, and iPhone demand is weak elsewhere around the world.

But I don’t think any of the above are likely. Keep in mind that Verizon’s statement is in a legally binding filing with the SEC. The WSJ’s report of “weaker-than-expected demand” for the iPhone 5 was from “people familiar with the situation”.

β˜… Monday, 14 January 2013

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