Verizon Communications Inc. (VZ): Why Is It Still Selling So Many Old Apple Inc. (AAPL) iPhones?

Tough to beat “free”

Meanwhile, I had bitterly watched nearly everyone else I knew zip around with a comparatively quick iPhone, with their enviable access to nearly every neat little app imaginable. As a result, when I had the chance to start a new two-year contract with Verizon Communications Inc. (NYSE:VZ) in February, I promptly ordered my new iPhone 4.

For free.

Oh, and did I mention it was free?

You see, I’m one of the apparently large camp of folks who really doesn’t care whether they have the latest and greatest tech available at any given time. Heck, I still drive around my wife’s first car — a ’98 Cavalier with more than 200,000 miles on it. Does my 6-foot-4 frame look awkward getting out of that car? Sure. Do I care? Not really.

Similarly, I’m more than happy with my “old” iPhone, especially considering I’ve never known any other. And when the time comes to renew my contract in a couple of years, I’ll gladly upgrade to whichever version of the iPhone 5 happens to be free at that time.

So how, exactly, is this good for Apple?
While Apple certainly gets less per device from Verizon Communications Inc. (NYSE:VZ) on older products, that still doesn’t mean it won’t eventually get our money.

In fact, I’ve spent more than my fair share in Apple’s iTunes and App Store buying apps, music, television episodes, and movie rentals through both my iPad and iPhone. And that, my fellow Fools, is where forward-looking companies such as Apple and Amazon.com, Inc. (NASDAQ:AMZN) know the real money is to be made down the road. The difference between Apple and Amazon.com, Inc. (NASDAQ:AMZN), however, is that Apple is already making boatloads of cash as it grows its already massive digital infrastructure.

The article Why Is Verizon Still Selling So Many Old iPhones? originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington owns shares of Apple. The Motley Fool recommends and owns shares of Amazon.com and Apple.

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