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Verizon Activates 2.3 Million iPhone 4s In Q2

As noted by ZDNet, Verizon reported its second quarter earnings today, delivering strong results and reporting revenue of $27.53 billion. The company added 1.3 million postpaid customers, with data revenues up 22.2 percent year-over-year and 189,000 FiOS Internet and 184,000 FiOS TV net additions. As with the iPhone, the earnings reveal Verizon activated 2.3 million iPhone 4 units in the second quarter, a 100,000 units increase from the 2.2 million iPhone 4s they activated in the previous quarter after roughly two months of availability in the US since the February 10 launch.

Verizon’s relatively flat growth rate with activated iPhone units doesn’t surprise when compared to AT&T’s similar trend - AT&T activated 3.6 million iPhones in the last two quarters. The difference, however, is that Verizon only has access to the CDMA iPhone 4, both in black and white, whereas AT&T sells both the black/white iPhone 4 and the older iPhone 3GS model, which is still on sale and considered a good entry option for new iPhone users that don’t want to spend a ful $200 on an iPhone 4 with a two-year contract. AT&T’s offer is diversified, Verizon Wireless doesn’t have a cheaper iPhone 3GS to sell to its customers.

Moreover, with increasing rumors of a new iPhone coming out in September (allegedly confirmed by Apple’s “product transition for the September quarter” revealed at the Q3 earnings call), it’s likely customers are holding off new purchases (and thus, contracts) as they wait for a new device to become available in the Fall. The iPhone 5 has been rumored to have worldphone capabilities with an integrated GSM/CDMA chip, and most recent speculation has also claimed Apple could be considering a new, cheaper iPhone to sell off contract at less than $200 to attract the masses of the pre-paid market.

[ZDNet - PRNewswire]

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