Verizon Profit Doubles in Q3

October 22 00:00 2011

New York, October 22 ( – America’s second largest telephone company, Verizon (NYSE: VZ) has reported that its Q3 profits doubled as more and more customers were attracted by its portfolio of iPhone and Android devices.

However, analysts said that fewer new contract customers were added by Verizon than what they had expected. This was blamed on the overall slowdown in the wireless industry and an escalating rivalry between Verizon and AT&T. The later-than-expected announcement regarding iPhone 4S was also partly responsible because consumers delayed their upgrading or buying new devices.

Philip Cusick, an analyst with J. P. Morgan who covers the telecommunications industry said “Everyone was frozen, waiting for the iPhone.”

In spite of the above impediments, Verizon added 1.3 million customers, moving up its total subscriber base to 107.7 million. 882,000 of the new additions were contract customers. In comparison, AT&T only added 319,000 wireless customers during the same quarter.

During the third quarter, Verizon reported that it sold two million iPhones and although it did not reveal the number of iPhone 4S it sold because it became available only after the end of the quarter. However, on the first day that the iPhone 4S was available for sale, Oct. 14, the entire supply was sold out. It has been on back order since then.

The company is looking forward to a robust fourth-quarter.