Verizon's iPhone sales are dragging down its 4Q margins.
Verizon Communications said it sold 4.2 million of Apple Inc.'s iPhones in the fourth quarter, but that is going to shave its profit margins by about 6 percent points.
Verizon Chief Financial Officer Fran Shammo told investors during a Web conference that the big iPhone numbers brought it "extremely close" to its target of 11 million sales in 2011, according to the Silicon Valley/San Jose Business Journal.
But because it pays a big subsidy on each iPhone sold, he said that is bringing its profit margins down.
This would mean margins will drop to between 42 percent and 43 percent in the fourth quarter from 47.8 percent in the third quarter.
Earlier this month, the Business Journal reported that Verizon was rated as having the best overall service in Jacksonville among the major cell phone carriers.
Verizon Communications said it sold 4.2 million of Apple Inc.'s iPhones in the fourth quarter, but that is going to shave its profit margins by about 6 percent points.
Verizon Chief Financial Officer Fran Shammo told investors during a Web conference that the big iPhone numbers brought it "extremely close" to its target of 11 million sales in 2011, according to the Silicon Valley/San Jose Business Journal.
But because it pays a big subsidy on each iPhone sold, he said that is bringing its profit margins down.
This would mean margins will drop to between 42 percent and 43 percent in the fourth quarter from 47.8 percent in the third quarter.
Earlier this month, the Business Journal reported that Verizon was rated as having the best overall service in Jacksonville among the major cell phone carriers.
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