Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

Summary: Incoming Verizon CEO Lowell McAdam said it may be "a quarter behind" on its goal to reach its smartphone targets because it had banked on an iPhone 5 being launched in the summer.

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Incoming Verizon CEO Lowell McAdam said it may be "a quarter behind" on its goal to reach its smartphone targets because it had banked on an iPhone 5 being launched in the summer.

McAdam made the comments on Verizon's second quarter earnings conference call. The company reported better-than-expected financial results, activated 2.2 million iPhones and officially said McAdam would become CEO Aug. 1.

In January, Verizon outlined a goal to have half of its devices be smartphones by the end of the year. One analyst noted that the smartphone mix through the second quarter---36 percent of Verizon's retail postpaid customer base has a smartphone---would fall short.

On the conference call, McAdam said:

We are probably what I would view as maybe a quarter behind what we had talked about in January , primarily because we expected an iPhone 5 refresh sometime this summer . We don't know when the next one is going to come out. You will have to ask Apple that. But we expect that probably sometime in the fall, and I think you will see a significant jump there when we get to that point. On the LTE side, I can't tell you how pleased I am at how the device manufacturers have stepped up with all kinds of devices. We are beginning to see even in the machine-to-machine space LTE modules, because the latency is so much better than we have in a 3G environment. Our fourth-quarter lineup is going to be very robust. You have seen -- you have gotten a little bit of a peek at that through devices like the Samsung [Charge]. So the screen density is so significantly better than what we have seen in the past. So I think we are going to have probably in my entire career the best fourth-quarter lineup of devices I have seen, which will shift that mix that you talked about.

Overall, McAdam said he was satisfied with Verizon's iPhone activations---4.5 million to date---given there's no iPhone 5 on the immediate horizon. And then there's AT&T, which has held its own.

"Given the delay of the iPhone 5 is more than a quarter, I think we have actually performed quite well. AT&T is a strong competitor, and they have done a lot of things to be a strong competitor. But I like our porting ratios. I like our growth rate versus theirs," said McAdam.

Topics: iPhone, Hardware, Mobility, Smartphones, Verizon

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18 comments
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  • Wait a minute, I thought Android was making the iPhone

    irrelevant? What is this nonsense that Verizon can't meet smartphone goals without the iPHone?
    fr_gough
    • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

      That piece of Android junk is not going to make anything irrelevant. I have the Droid, and can't wait to get rid of that piece of junk. Experiencing screen freeze, lock, and on/off when it feel like it. Now, AT&T increased its bottom line with the 3GS, how funny is that.
      JunitoNH
      • Yeah Android is clunky

        @JunitoNH Sure it's a nice alternative but it really needs some updating. Mine has all sorts of quirks too...lock ups, loss of voice...sure it has the new 4G chipset so I expect some glitches...but its getting annoying.
        otaddy
      • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

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        molly83
    • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

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      mrswilliamson
  • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

    So the CEO added, in order to meet our goals both monetarily and increase the number of smartphones, lets do something smart. Lets increase our prices and create tier plans. All gathered said, "Amen".
    JunitoNH
  • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

    verizon, nor any carrier will meet such targets, until they realize that we the consumer run the business and they stop choking us with ads!! Why does it matter? B/C every carrier will have lots of churn until they act responsibly and fairly in the market place.Until then , I'm all over walmart $45 REAL unlimited plans. screw the 'leaders' who can't get over 36%..Again, CHURN CHURN CHURN, they keep the GOTCHAS coming.
    And NO , I do NOT need the newest , latest, and greatest toy in town,I only 'need' a PDA along with a cell phone WITHOUT BEING GAGED WITH AN UNNEEDED DATA PLAN..My most hated quote ?" smart phones use more data" Hey jerk face, SMART PHONES USE NO DATA, PEOPLE USE DATA
    bfriskey
  • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

    How about a 'smart phone' that first; works great as a phone; and then isn't loaded up with useless bloatware from the mfg. that cannot be removed!
    glen13
    • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

      @glen@... That is called an iPhone.
      Bay Area CA Male
      • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

        @Bay Area CA Male
        Or a Windows Phone 7 :P
        (could make joke here about iPhone 4 call dropouts, but won't...)
        xnederlandx
      • Nexus S Doesnt have the bloatware & has features the next iPhone will copy

        @Bay Area CA Male @Glen@

        Its called a Nexus S (essentially what the next iPhone will copy)
        Michael_Martin
    • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

      @glen@... I think that we are past the point of no return with bloatware. It is in the carriers' interest to put on lots of bloatware to entice the users to use more data bandwidth now that the majority of them eliminated the unlimited data plans.
      aaronalter2000
      • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

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        gates08
  • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter beh

    Attn Mr. McAdam<br>If you are behind in smartphone sales, there are other excellent options besides the iPhone. There are LOTS of your current customers who have Palm Pre Plus phones. We have been waiting and waiting for even a minimal comment from Verizon that the Pre 3 is on its way. WADR to the Pre 2 being available, technology moves along and becomes obsolete fast enough without intentionally purchasing an OLD phone that already has a replacement in the marketplace.<br><br>The iPhone is not the only option. In fact, from many of the current users of both the iPhone and the various 'Droids that I talk with, webOS puts those devices to shame. I am very satisfied with my Pre Plus, but I will never replace it with a iPhone with the dropped-call rate where is is; even on VZW.<br><br>You want to sell smartphones? OFFER ME A PRE 3!

    Oh, one other point: Offer me a TouchPad with a VZW radio and I'll buy BOTH.
    MCGJr
    • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

      @MCGJr

      Ummm... Mr. "i think i know all but in reality i know nothing"...
      Do you read the articles?
      Then did you READ that Verizon added 4.5 MILLION iphone subscribers? Do you really think that a floppy Pre is going to add even half of that?

      Well, ill make it easy for you.
      NO WAY is anything short of the iPhone 5 going to add more than 1 million users in the near future.
      ESPECIALLY not pre! LoL!
      Bay Area CA Male
    • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

      @MCGJr At what point did they say that the iPhone 5 was the only option? What they said was it was their best option. Good luck to you and the other's waiting on the Pre 3.
      non-biased
  • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

    Is the delay at Verizon because they want to tweak the iPhone to turn off anything that lets the user bypass the network to load your own ringtones and games?
    aaronalter2000
  • RE: Verizon's new CEO: Lack of iPhone 5 puts smartphone goal 'a quarter behind'

    The CEO figured that to bring in the revenue needed and to also increase the sales of their smartphones they could have a tiered plan system, and increase the price of the phones. Seems reasonable. That's the opinion of <a href="http://seo.madbeetech.com/">MadBeeTech SEO inexpensive white hat SEO</a>.
    JohnnyJ9