The Apple Watch and other wearable devices helped Verizon grow its subscribers last quarter despite the loss of traditional phone and tablet customers, reports Bloomberg.
Verizon's monthly subscribers climbed by 260,000 in the first quarter thanks to 359,000 new subscribers who are using watches, wearables, and other devices. That made up for the loss of 24,000 phone customers and 75,000 tablet customers. Watch customers pay about $10/month compared to $40/month or more for a typical phone customer.
The results renewed optimism that the largest U.S. mobile-phone carrier can cope with a maturing industry. Even as the company lost phone and tablet subscribers, new customers using mobile service for Apple Inc. and Samsung Electronics Co. watches, vehicles and other applications offset the shortfall. The results sent the shares up as much as 3.6 percent to $50.39.
Bloomberg also noted that Verizon's FiOS landline service added 66,000 Internet customers in the first quarter; however, it lost 22,000 TV subscribers.
Verizon posted earnings of $1.17 a share, slightly higher than the $1.11 forecasted. Kevin Roe, analyst at Roe Equity Research, says "Verizon delivered results slightly above muted expectations, and we think that is good enough for the market."
Take a look at the chart below and hit the link for more details...
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Verizon's monthly subscribers climbed by 260,000 in the first quarter thanks to 359,000 new subscribers who are using watches, wearables, and other devices. That made up for the loss of 24,000 phone customers and 75,000 tablet customers. Watch customers pay about $10/month compared to $40/month or more for a typical phone customer.
The results renewed optimism that the largest U.S. mobile-phone carrier can cope with a maturing industry. Even as the company lost phone and tablet subscribers, new customers using mobile service for Apple Inc. and Samsung Electronics Co. watches, vehicles and other applications offset the shortfall. The results sent the shares up as much as 3.6 percent to $50.39.
Bloomberg also noted that Verizon's FiOS landline service added 66,000 Internet customers in the first quarter; however, it lost 22,000 TV subscribers.
Verizon posted earnings of $1.17 a share, slightly higher than the $1.11 forecasted. Kevin Roe, analyst at Roe Equity Research, says "Verizon delivered results slightly above muted expectations, and we think that is good enough for the market."
Take a look at the chart below and hit the link for more details...
Read More