Mobile Devices

April 22, 2013

Verizon Activates Four Million iPhones Last Quarter, Worries Haunt Apple

So far, 2013 hasn't been kind to Apple. First the company found a major competitor in Samsung's Galaxy S smartphone line, then its stock took a massive hit on Wednesday — falling low as $400 — and now the firm is learning that only half of its four million iPhone activations on the Verizon network were iPhone 5’s.

While two million activated iPhone 5’s may not seem like a problem to some, the device’s slow consumer adoption may signal Apple's previous iPhones are close enough in its capabilities with the new iPhone 5, to which customers seemingly don't want to upgrade. As The Street notes, this may give Apple more reason to either consider a cheaper iPhone for downmarket — rumored to be in the works — or to create a new innovative product to appeal to consumers.

If Apple goes the innovative route, it'll likely be in the form of the rumored iWatch, expected to be announced this year, and could be the innovation that brings the magic aura back to Apple — and the key to a potential $6-billion market.

The problem of getting people to stop using their phones as watches, though, has yet to be solved.

But Verizon's first 2013 earnings call did have a few bright spots for Apple: a 25-percent increase in activations compared to the same time last year (beating Wall Street estimates), and a 1-percent increase in its stock, which gave the company a nice push against concerns over slow growth and innovation.

Apple's first quarter iPhone sales report will be announced on Tuesday, along with AT&T. If Apple's earnings fall short of expectations, it could cause investors to worry even more about the direction of the company post-Steve Jobs — or, as Matt Krantz of USA Today writes, cause Apple's stock to be "repriced for reality."

Edited by Braden Becker

comments powered by Disqus

FOLLOW MobilityTechzone

Subscribe to MobilityTechzone eNews

MobilityTechzone eNews delivers the latest news impacting technology in the Wireless industry each week. Sign up to receive FREE breaking news today!
FREE eNewsletter