Android owners, is this headline surprising to you? How can one smartphone be dominating in smartphone sales? Shocker indeed. Today, Verizon revealed its quarterly earnings for the fourth quarter of 2011, and during the call, they revealed that they sold 7.7 million smartphones. Shockingly, 4.2 million of which were iPhones. Remember, this is a phone that lacks 4G and only comes in one model, while Android phones come in all sizes and specifications. These numbers go to show that the iPhone on all carriers is clearly making a dent in Android sales and marketshare.
Verizon also reported that smartphones now account for 44% of the company’s postpaid customer phone base, which is up from 39% in the previous quarter. However, this strong growth in smartphones significantly reduced the carrier’s margins last quarter as the carrier is absorbing the costly upfront subsidies paid to manufacturers for the devices. . The carrier plans to recover these costs over the length of customers’ contracts, making it willing to take short term hits to profitability to lock in smartphone customers on profitable service contracts.
Apple will report its total number of iPhone sales for the holiday quarter at 2 PM PST this afternoon.