Big iPhone sales crimp Verizon Wireless Q4 margins

Verizon Communcations said on Wednesday that it sold 4.2 million of Apple Inc.? ? Apple Inc. Latest from The Business Journals PaperPort Notes app for iPad offers versatile, fun way to take notes, share themSamsung pulls tablet ad with iPhone child actressApple snags Adobe executive Todd Teresi Follow this company 's iPhones in the fourth quarter, but that is going to shave its profit margins by about 6 percent points.

Verizon Chief Financial Officer Fran Shammo told investors during a Web conference that the big iPhone numbers brought it "extremely close" to its target of 11 million sales in 2011.

But because it pays a big subsidy on each iPhone sold, he said that is bringing its profit margins down.

This would mean that margins will drop to between 42 percent and 43 percent in the fourth quarter from 47.8 percent in the third quarter.

Verizon Wireless? ? Verizon Wireless Latest from The Business Journals Verizon upgrades 3G wireless coverage in HawaiiAT&T expands mobile broadband in New MexicoVerizon Wireless nixes plan for fee Follow this company also said it sold 2.2 million smartphones that run on its high-speed wireless network.

Shammo also said during the call that the company ended the year with a backlog of 120,000 iPhone orders.

Written by Cromwell Schubarth. Contact him at cschubarth@bizjournals.com or 408.299.1823.

Verizon Communcations said on Wednesday that it sold 4.2 million of Apple Inc.? ? Apple Inc. Latest from The Business Journals PaperPort Notes app for iPad offers versatile, fun way to take notes, share themSamsung pulls tablet ad with iPhone child actressApple snags Adobe executive Todd Teresi Follow this company 's iPhones in the fourth quarter, but that is going to shave its profit margins by about 6 percent points.

Verizon Chief Financial Officer Fran Shammo told investors during a Web conference that the big iPhone numbers brought it "extremely close" to its target of 11 million sales in 2011.

But because it pays a big subsidy on each iPhone sold, he said that is bringing its profit margins down.

This would mean that margins will drop to between 42 percent and 43 percent in the fourth quarter from 47.8 percent in the third quarter.

Verizon Wireless? ? Verizon Wireless Latest from The Business Journals Verizon upgrades 3G wireless coverage in HawaiiAT&T expands mobile broadband in New MexicoVerizon Wireless nixes plan for fee Follow this company also said it sold 2.2 million smartphones that run on its high-speed wireless network.

Shammo also said during the call that the company ended the year with a backlog of 120,000 iPhone orders.

Written by Cromwell Schubarth. Contact him at cschubarth@bizjournals.com or 408.299.1823.

Source: http://feedproxy.google.com/~r/vertical_46/~3/B01GzFtLLJ8/big-iphone-sales-crimp-verizon.html

mild kidney failure presidential candidates republican candidates celebrity wife swap gla rick perry jeff fisher