Apple and Verizon: The relationship between Apple Inc. (NASDAQ:AAPL) and Verizon is mutually beneficial. Apple relies on carriers to get its devices into the hands of consumers. On the other side of things, Verizon (among other carriers) relies on Apple to offer high quality smartphones that will attract buyers to their service.
According to a recent report by AppleInsider, these two companies have settled into an agreement that appears to be working nicely for everybody involved:
“Apple’s iPhone accounted for 6.2 million of the 9.8 million smartphones Verizon sold in the last quarter, powering record smartphone adoption numbers at the nation’s largest carrier even as Verizon posted a big loss for the quarter.”
In other words, the iPhone is responsible for just about two-thirds of Verizon’s sales in quarter four.
What about the competition? How are smartphone from other companies selling for Verizon? Here is what the same article had to say:
“The iPhone across all of its models sold nearly double the number of Android-based smartphones sold in the past quarter. Verizon’s Chief Financial Officer Fran Shammo revealed that approximately half of the iPhones Verizon sold in Q4 were 4G LTE, meaning that they were iPhone 5 units.”
Accounting for 63 percent of all smartphone activations is a big deal for Apple Inc. (NASDAQ:AAPL) as well as Verizon. That being said, you have to take a closer look at past sales figures to realize just how big things are getting for the two companies.
Over the past five quarters, the iPhone held a 47 percent average. In other words, it accounted for roughly 16 percent more of Verizon sales during the fourth quarter of 2012.
Apple Inc. (NASDAQ:AAPL) is clearly the big winner. Here is some more information from the Verizon side of things:
“The nation’s largest carrier saw $30 billion in revenues for the fourth quarter of 2012, up 5.7 percent over the prior year. Of that, about $20 billion was wireless revenue. For the whole of 2012, Verizon saw $115.85 billion in revenue, up 4.5 percent year-over-year.”
“The carrier saw its total wireless subscriber base grow by five million customers over 2012, the highest growth Verizon has seen in four years. Retail postpaid connections were up 5.9 percent year-over-year.”
While Verizon is sure to be happy with an increase in its total wireless subscribers, they have Apple Inc. (NASDAQ:AAPL) to thank. iPhone sales are on the rise.
What are your thoughts on this sales breakdown from Apple and Verizon? Are you surprised by the numbers?
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DISCLOSURE: I have no positions in any stock mentioned.
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