Verizon Q3 solid: 4.5 million LTE devices sold

Verizon Q3 solid: 4.5 million LTE devices sold

Summary: Verizon activated 3.1 million iPhones in the quarter and 21 percent of them were LTE. The company activated 3.4 million Android phones and 3 million were 4G LTE.

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Verizon reported strong third quarter results as its 4G LTE rollout hit an inflection point. The company sold 4.5 million LTE devices in the quarter courtesy of the iPhone 5 and its Android lineup and now has 4G available to 250 million people.

The company reported third quarter earnings of 56 cents a share on revenue of $29 billion, up 4 percent from a year ago. Non-GAAP earnings for the third quarter were 64 cents a share, in line with Wall Street estimates.

Verizon said that it added 1.8 million retail subscribers, with 1.5 million of that sum postpaid. Retail postpaid churn was 0.91 percent.

Overall, Verizon has 90.4 million retail postpaid connections.

The addition of the iPhone 5 appears to have boosted Verizon's LTE additions by a wide margin. Meanwhile, Verizon said 13 percent of its wireless plans are now in the share everything category.

CFO Fran Shammo said on an earnings conference call that 35 percent of Verizon's data traffic is on the LTE network.

Shammo added that Verizon activated 3.1 million iPhones in the quarter and 21 percent of them were LTE. The company activated 3.4 million Android phones and 3 million were 4G LTE.

Going forward, Shammo said:

Looking ahead, we see a great deal of new product development activity in M2M, particularly in health care and energy. We are also collaborating on an innovative video roadmap with the cable companies as part of our technology joint venture.  

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CEO Lowell McAdam said Verizon was on track to hit its 2012 financial targets and its LTE network is humming. McAdam also said the enterprise growth businesses were solid.

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By the numbers:

  • Verizon Wireless revenue in the third quarter was $19 billion, up 7.3 percent from a year ago.
  • Wireless connections were 95.89 million at the end of the quarter.
  • Retail postpaid accounts were 34.8 million.
  • Smartphones were 53 percent of the customer base.
  • Enterprise revenue was $3.8 billion, down 3.6 percent from a year ago.
  • Verizon added 136,000 new FiOS Internet connections and 119,000 FiOS video customers.
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Topics: Networking, 4G, Mobility, Smartphones, Telcos, Verizon

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7 comments
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  • I keep seeing references to the iPhone

    Helping VZW's LTE device sales by a wide margin but I'm not seeing any actual figures to support this in the article or in the link to VZW's statement. Did I miss the breakdown of sales per device? Not that the iPhone sales surprise me but I'd like to see the data.
    athynz
    • Remember

      the iPhone 5 is the first LTE iPhone. It went on sale 9/21, with 9 days left in the quarter. Total iPhones for the approximately 180 day quarter, was 3.1 million. 79% were 3G, 21% were LTE. That equates to approximately 650K iPhone 5s.
      srs2273
  • Obvious Bias

    It's clear that the author is biased towards the iPhone. Android had a substantially higher number of 4G LTE activations yet the author made it sound as though it was all due to the iPhone.
    DaKineToeKnee
    • No bias, since Lawrence talked about the "boost", which was almost ...

      ... exclusively provided by the start of iPhone 5 sales.
      DDERSSS
    • iPhone 5 was on sale for...

      ...nine days during the quarter. They state at the beginning of the article that of the 3.4 million Android phones, 3 million were LTE.
      srs2273
  • And how about those plans for Windows Phone 8?

    Come on, Verizon, let's go here.
    FDanconia
  • iphone 5

    So the 651,000 iphone 5's that were sold only accounts for about 15% of lte phones that were sold in the quarter. While that is still good/great for the iphone 5, when you read these articles you would think Verizon would have been in the tank without the iphone 5. Also, it seems as if the iphone is getting more headlines for Verizon performance than the fact that a lot of the profit is the result of more people being forced into the tiered plans.
    Justice007