Verizon CFO says free Apple iPhone 4 was a big hit in Q4
The conditions of the deal/s may have changed since the initial publishing of this post.
The Apple iPhone 4 is free at Verizon with a signed two-year pact
Since the Apple iPhone 4 is not an LTE enabled model, all of those customers that agreed to be handcuffed to Big Red for two years added to Verizon's 3G subscriber rolls. And with no money budgeted for the carrier's 3G network except for maintenance, those accounts generate revenue that practically flows right to the bottom line. The Verizon executive also said that the nation's largest carrier will not offer incentives to sales reps to sell low-subsidy devices to customers to pump up profit margins. Shammo let it be known that he is against that practice as his goal is for Verizon customers to leave the store with the device that they want.
"The worst thing that can happen for us is for me to incent [sic] a salesperson to get you into a phone that you walk out the door with thinking you are going to like and in three days you come back because you don't like it. Therefore, now I've just subsidized two smartphones because that phone you used I can't resell as a new phone."-Fran Shammo, CFO, Verizon
Earlier on Monday, we told you how Shammo told the Conference that Verizon might soon 86 the 3G phones on its lineup (despite the success of the Apple iPhone 4), and reduce the carrier subsidies that allow you to buy a new handset for $199 to $299 with a two-year contract.
source: VerizonTranscript via AppleInsider
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