Should Verizon Dump Apple's iPhone? (VZ) (AAPL)
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Why then should Verizon (NYSE: VZ) continue to offer the iPhone? Analysts at Goldman Sachs said they are getting this question more than ever from investors.
Verizon investors note that the company maintained industry leading metrics without the device. In 2011, Verizon's first year carrying the device, service revenue increased $3.53 billion, the exact same increase as 2010, while subsidies increased by $1.5 billion after declining in 2011.
Despite this, it is Goldman's view that Verizon and other carriers need to remain committed to the iPhone as well as better discipline on upgrade policies.
In 2011, all the major wireless carriers made changes to their upgrade policies. While the changes are a step in the right direct, the question is if they can retain discipline. The carriers discipline on upgrade policies will face an important test with the upcoming iPhone 5. "If carriers can prove discipline through that cycle, then sentiment on the group could improve significantly," Goldman's analyst states.
Goldman continues to favor Verizon in the group for LTE leadership and faster growth, although they note that investors will be guarded with smartphone upgrade mechanics negatively impacting the sector as a whole.
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Goldman SachsComments
Dump iPhone?
That Goldman Sachs seriously considered this question (if they truly did) explains why so many "analysts" get so much so wrong. If you dance with Apple, you dance with the gorilla - and you sit down when the gorilla says you can sit down.
In case anyone noted, there's a war out there, between both carriers and hardware competitors. The prize: American industry, both swapping their Blackberrys for iPhones, and for applying CRM, conferencing, and a host of other applications on their iPhones.
If Verizon needs to increase profitability, why not work with industrial customers to figure out what we might value that other providers aren't - and sell us that? How about 4G hotspot for our iPhones at less than the cost of a 4G feature in our iPad?
In the meantime - don't stop dancing...
Should Verizon Dump Apple's iPhone?
Sure, if they want to commit suicide.
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Verizon iPhone 4
Diug on Apr 14, 2012 04:26 AMMark as Spam
Apple should dump Verizon, I just bought a Verizon iPhone 4 and I so sick and disappointed I will never have anything to do with Verizon and I tell people just that every single day