Do Verizon Numbers Mean Apple Had a Bumper Quarter?
Is Verizon’s (NYSE:VZ) earnings report a sign of better-than-expected iPhone sales in the June quarter? On Thursday, Verizon announced that it activated a total of 7.5 million smartphones last quarter. According to CFO Fran Shammo via Apple Insider, Apple’s (NASDAQ:AAPL) iPhone accounted for 3.8 million of those activations.
Wells Fargo analyst Maynard Um observed via Apple Insider that Verizon has consistently handled approximately 11 percent of Apple’s iPhone sales in each of the last six quarters. Although the consensus estimate for iPhone shipments in the June quarter is about 26.5 million, Verizon’s 3.8 million units could push Apple’s total iPhone sales for the quarter to almost 35 million.
Not only is this amount higher than consensus estimates, it is over 8 million units higher than Um’s own previous estimates. Apple Insider notes that this is a 41 percent increase over the 2.7 million iPhones that Verizon sold in the June quarter last year. That quarter, Apple reported revenue of $28.6 billion and net profit of $7.3 billion.