While speaking today at the Duetsche Bank Annual Media, Internet & Telecom conference, Verizon Wireless CFO Fran Shammo let us in on a little information on how Verizon was able to sell over 6 million iPhones in the fourth quarter last year. The key for Verizon? The iPhone 4. Yes, the two year old Apple device was crucial part for “Big Red’s” success last quarter. If you’re wondering why, the answer is simple: it’s free! When speaking about the iPhone 4, Shammo noted that America’s largest carrier gained a lot of new customers because Verizon was offering a free Apple device for the first time.
But this past fourth quarter you had a couple — you had really one thing happen that never happened before, especially with Verizon Wireless, and that was for the first time ever, because of the iPhone 5 launch, we had the 4 at free. So it was the first time ever you could get a free iPhone on the
Verizon Wireless network. So that produced a lot of volume for us. We had a lot of new customers come into Verizon who took that free phone, and that was great for us because again if you think about — we sold a lot of LTE product in the fourth quarter. We sold a lot of 3G product from the iPhone products in the fourth quarter.
While speaking today, Shammo also addressed the issue of subsidy costs, and how it effects phone sales. To the delight of many, Shammo noted that Verizon employees are not discouraged from selling Apple devices simply because of a higher subsidy cost, because his company would rather have a happy customer. It’s good to hear that “Big Red” is worried more about its customers, and less about subsidy costs.
Did any of you switch to Verizon because of the availability of the free iPhone 4? Let us know in the comments below!
Source: 9 to 5 Mac