iPhone 4S adding most new subscribers to Verizon

iPhone | Monday December 5 2011 7:29 AM | Comments (0) Tags: , , , ,

iPhone 4S adding most new subscribers to Verizon

(Credit:
Apple )

The iPhone 4S is kicking in plenty of subscribers for all three of its U.S. carriers, but Verizon is proving to be the biggest beneficiary of Apple ‘s latest refresh, according to a new report from J.P. Morgan.

Thanks to the new iPhone , Verizon is expected to add 1.2 million postpaid subscribers during the fourth quarter, an increase from J.P. Morgan’s earlier forecast of 1 million.

In comparison, AT&T is likely to add around 450,000 subscribers for the quarter and Sprint around 250,000. As the only U.S. carrier without the iPhone , T-Mobile USA is projected to lose around 400,000 postpaid subscribers for the year’s final quarter.

Overall, iPhone 4S sales across the carriers remain high despite a short supply.

Customers eager for Apple ‘s new flagship phone are typically seeing wait times of two weeks for certain models at Verizon and AT&T and one week at Sprint. But iPhone sales so far have reached around 6 million at AT&T, 4 million at Verizon, and between 1.75 million and 2 million at Sprint.

But ironically, higher iPhone sales are leading to tighter margins for the carriers due to the huge subsidies that they have to shell out to Apple . With iPhone sales much greater than expected, margins could be dampened in the fourth quarter.

J.P. Morgan analyst Philip Cusick estimates Verizon’s subsidy on each iPhone 4S at $350, AT&T’s at $375, and Sprint’s at close… [Read more]

iPhone 4S adding most new subscribers to Verizon

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