Verizon Announces 3.1 Million iPhones Sold in Q3 2012

Verizon has announced its earnings for the third quarter of 2012.

In a conference call following the release, the company said 3.4 million of its smartphone sales were Android devices, 3 million of which supported LTE. The company also sold 3.1 million iPhones, 21% of which were iPhone 5 devices. The calculates to 650,000 iPhone 5s sold between September 21st and the quarter's end.

Verizon CFO Fran Shammo said the iPhone 5 was unsurprisingly supply-constrained and that "we're not sure where we're going to stand in the fourth quarter."


Wireless Financial Highlights
● Service revenues in the quarter totaled $16.2 billion, up 7.5 percent year over year. Retail service revenues grew 7.9 percent year over year, to $15.5 billion.
● Total revenues were $19.0 billion, up 7.3 percent year over year.
● Retail postpaid ARPA (average revenue per account) grew 6.5 percent over third-quarter 2011, to $145.42 per month. Following the recent introduction of the Share Everything Plan and as customers continue to add multiple devices to accounts, Verizon Wireless now reports ARPA instead of ARPU since customers can share data among multiple devices.
● Wireless operating income margin was 31.8 percent and segment EBITDA margin on service revenues (non-GAAP) was 50.0 percent, setting record highs for the second consecutive quarter.

Wireless Operational Highlights
● Verizon Wireless added 1.8 million retail net connections in the third quarter, including 1.5 million retail postpaid net connections, the highest in four years. These additions exclude acquisitions and adjustments.
● At the end of the third quarter, the company had 95.9 million retail connections, a 5.7 percent increase year over year, including 90.4 million retail postpaid connections.
● Verizon Wireless had 34.8 million retail postpaid accounts at the end of the third quarter, a 1.0 percent increase over the third quarter 2011, and an average of 2.6 connections per account, up 4.0 percent year over year.
● At the end of the third quarter, smartphones constituted more than 53 percent of Verizon Wireless' retail postpaid customer phone base, up from 50 percent at the end of second-quarter 2012.
● Retail postpaid churn was 0.91 percent in the third quarter, an improvement of 3 basis points year over year. Total retail churn was 1.18 percent in the third quarter, an improvement of 8 basis points year over year.
● Verizon Wireless continued to roll out its 4G LTE mobile broadband network, the largest 4G LTE network in the U.S. As of today (Oct. 18), Verizon Wireless 4G LTE service is available to more than 250 million people in 419 markets across the U.S.
● The company introduced seven 4G LTE smartphones in third-quarter 2012: the DROID Incredible 4G LTE by HTC, Samsung Galaxy S III, Pantech Marauder, Intuition by LG, Samsung Galaxy Stellar, DROID RAZR M by Motorola, Apple iPhone 5; and one 4G LTE tablet, the Samsung Galaxy Tab 2. The company also announced the availability of the DROID RAZR HD and the RAZR MAXX HD by Motorola, which are launching today.
● After receiving FCC approval in late August, Verizon Wireless purchased AWS spectrum from SpectrumCo and Cox Communications, and also completed its spectrum transactions with T-Mobile USA Inc., Leap Wireless and Savary Island Wireless.

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