Verizon market share now lowest in a decade

Verizon endeavor to acquire new customers hit a road block according to it recent earnings report today. Company profits plunged to $2.28 billion, or 14 cents per share, from $3.21 billion, or 58 cents per share, during the same quarter a year ago. The results for the three-month period included a $970 million charge related to U.S. health care reform. Verizon previously received a tax-free benefit from the government to subsidize health care costs for retirees, who would otherwise be on a Medicare Part D plan. Under the new legislation, Verizon is no longer be able to deduct that subsidy.

Verizon previously received a tax-free benefit from the government to subsidize health care costs for retirees, who would otherwise be on a Medicare Part D plan. Under the new legislation, Verizon is no longer be able to deduct that subsidy. But it appears that investors aren’t too set off by the news as Verizon’s stock is only down 2% in trading today.

Update: According to Forbes: “The company said it did not appear to lose market share in the period, but the figure was its lowest in nearly a decade.” The Telegraph UK reports “Verizon Wireless signed up 423,000 contract customers in the three months to the end of March, far below analysts expectations of up to 786,000.”

Telus Q4 profit falls to $156 million; competition heats up the cold north

Telus Corp. says its profit tumbled 49 per cent in the fourth quarter as the competition in the wireless sector heated up, and Canada’s second-largest phone company responded by ramping up its network infrastructure. The Canadian wireless communications sector, which had consisted of only three national carriers including Telus until recently, has been battling a rash of new players who are offering highly competitive prices, including WIND Mobile. It’s hard be all high and mighty when smarter players jump into the game. The USA learned the hard way, eh?

[via The Star]
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Research Says iPhone Sales Hurt Not Help Carriers?

It appears all those heavy subsidies shelled out by Carriers around the world for the Apple iPhone haven’t made a dent to increase their respective profits. The Telecom’s thought that carrying the iPhone would lure consumers in with more expensive data plans but the carriers have not seen the results that AT&T has with the device.

“According to the research we have conducted on the operators, not one of these have increased their market share, revenue, or their earnings as a result of introducing the iPhone,” Strand Consult says in the report. Certain carriers even sent out low profit margin warnings  due to the iPhone sales model.

Our Story: iProfit, the iPhone Money Making Machine gave us a glimpse into the estimated profits Apple has made from iPhone sales, even though it was a smaller player compared to the other makers.

iProfit: The iPhone Money Making Machine

While other manufactures have been around making cell phones much longer than the big Macintosh on 1 Infinite Loop which has only been in this game a short time, it is truly stunning to see profit numbers of a young company such as Apple.

By convincing then AT&T (Cingular before they were acquired) that Data was more profitable than voice and having a handset that no other carrier had, Apple was able to achieve an unheard of deal that no other manufacture could. Apple delivered a must-have device that brought customers to AT&T at higher rates and a sexy iPod/Phone/Internet  device which consumers had to have.

While Apple only account for only 8% of the cell phone industry revenue, it’s profit margin accounts for 32% of the total cell phone industry profit. Apple’s revenue stream is not the highest either. Several other manufactures like Samsung, Nokia, RIM and LG are bigger. But Apple’s profit margin of 40% is the highest of them all. The second closest is short by almost half with an operating margin of 20.7%, RIM comes in at second place.

The iPhone has done what no other phone could up until now; Apple wrestled the power away from the carriers and gave it to manufacturers, developers, and consumers.

[via ismashphone]