Verizon Apple iPhone: It is safe to say that Fran Shammo, Verizon Communications Chief Financial Officer, knows a thing or two about his company’s relationship with Apple Inc. (NASDAQ:AAPL) and its iPhone. After all, the wireless carrier and tech titan have a nice working relationship that is beneficial to both sides.
Apple is actually the smart money’s second favorite publicly traded company (see why it’s important to pay attention to hedge fund activity).
During the recent Deutsche Bank 2013 Media, Internet & Telecom Conference, Shammo took the time to discuss the relationship between the two companies as well as what to expect in the future.
According to AppleInsider, “Shammo said on Monday that Apple’s free-on-contract iPhone 4 produced “a lot” of volume for America’s Verizon Wireless, and despite high subsidy costs, the telecom will not offer incentives for sales staff to push low-cost alternatives.”
This is good news for Apple Inc. (NASDAQ:AAPL), as the company would not be happy if Verizon sales people were being paid extra money to push lower cost smartphones.
Shammo understands the importance of the customer being able to make his or her own decision, without being pushed in one way or the next by a sales person. He added the following in a transcript provided by Verizon:
“The worst thing that can happen for us is for me to incent [sic] a salesperson to get you into a phone that you walk out the door with thinking you are going to like and in three days you come back because you don’t like it. Therefore, now I’ve just subsidized two smartphones because that phone you used I can’t resell as a new phone.”
It is good to see that Verizon and Apple Inc. (NASDAQ:AAPL) appear to be on the same page as far as the iPhone is concerned. The same cannot be said for all carriers. For example, you can check out this story that we published last week: Leap Wireless Not Happy with Apple Inc. (AAPL) iPhone Sales
What are your thoughts on this information provided by Shammo? Share your opinion in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
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