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Verizon doubles iPhone sales over last quarter

The carrier sells 4.2 million iPhones during the fourth quarter, double what it sold in the third quarter. And its got the new iPhone 4S to thank.

Roger Cheng Former Executive Editor / Head of News
Roger Cheng (he/him/his) was the executive editor in charge of CNET News, managing everything from daily breaking news to in-depth investigative packages. Prior to this, he was on the telecommunications beat and wrote for Dow Jones Newswires and The Wall Street Journal for nearly a decade and got his start writing and laying out pages at a local paper in Southern California. He's a devoted Trojan alum and thinks sleep is the perfect -- if unattainable -- hobby for a parent.
Expertise Mobile, 5G, Big Tech, Social Media Credentials
  • SABEW Best in Business 2011 Award for Breaking News Coverage, Eddie Award in 2020 for 5G coverage, runner-up National Arts & Entertainment Journalism Award for culture analysis.
Roger Cheng
2 min read
Josh Miller

Verizon had a happy holiday thanks to the Apple iPhone.

The company's wireless unit sold 4.2 million iPhones in the fourth quarter, Chief Financial Officer Fran Shammo said during an investor conference. The figure was more than double the number of iPhones sold in the previous quarter.

The figure underscores the enduring popularity of the phone and the importance of the device to each of the carriers, even if it is available now on three national carriers. Verizon considers it an important tool for convincing basic phone users to upgrade to a smartphone and pricier data plan.

The sales jumped thanks to the introduction of the iPhone 4S in October. Prior to the launch, Apple saw disappointing iPhone sales figures as consumers held off on buying the device until the new model arrived. Verizon said it ended the year with a backlog of 120,000 iPhone orders.

Adding the fourth-quarter figure, backlog, and sales from the rest of the year, and Verizon said it sold nearly 11 million iPhones in 2011.

As with the other carriers, the success of the iPhone comes at a cost to Verizon. The more iPhones it sells, the larger hit it takes on the upfront subsidy it must pay to Apple to keep the phone at $199. Shammo said the iPhone would cut gross margins by 500 to 600 basis points.

The carriers have been largely happy to take the margin hit because it leads to customers who pay more and stay with the service longer.

Verizon Wireless is jointly owned by Verizon and Vodafone Group.