Verizon denies allegations of low iPhone sales

Reports that the Verizon iPhone hasn't been selling exactly as predicted (and that prediction was like hot cakes!) have been circulating the Internet since the phone made its debut on the Verizon Wireless network. Apparently, those allegations have been quite the hyperbole if Daniel Mead, CEO of Verizon, has anything to say about it. In an interview reported by The Wall Street Journal (subscription required, via CNET and MacRumors), Mead refutes any claims that the iPhone's sales on their network is anything but going well.

He attributed the seemingly slow launch to online sales and a staggered rollout of the device. Mead said that Verizon offered pre-orders of the device a week prior to selling it in stores so that the costumer could have a smooth experience. As for short lines in retail stores on launch day, he went on to say that 60% of the iPhone sales took place online and stated "[if Verizon] had not done online, you would have seen a much different flow in the [news]." In the coming months, the company expects to expand the number of stores selling the iPhone from 4,000 to 8,000.

Mead also said that the company expects Apple to launch devices that are compatible with their 4G LTE network. "They understand the value proposition of LTE, and I feel very confident that they are going to be a part of it," Mead stated.

Mead declined to share exact sales figures of the iPhone on Verizon, saying they're going to wait until the company's next earnings release to announce those numbers.

Image credit: MacRumors

Report a problem with article
Previous Story

GeoHot legal fight helped out by Microsoft donations?

Next Story

Hands on: Mac OS X Lion Developer Preview

51 Comments

Commenting is disabled on this article.

A few things I am certain of:

1) Apple has a great marketing campaign. Because people are still buying there crap.
2) The iPhone is not selling on Verizon because Verizon customers are smart. They are holding out for the iPhone 5 due out in June/July. Let's face it, those that left a great network like Verizon to go to a crappy network like AT&T for the iPhone are the stupid ones. Verizon was left with more intelligent customers. IMO
3) The iPad 2 WILL NOT be innovative. It will have two cameras and NO increase in resolution.
4) When Steve Jobs dies, Adobe Flash will be coming to the iSh*t devices.

i know the 2 Verizon stores near me are still sitting on loads of iphones buddy works are one and he was shocked at how many they still have

im glad.. goes to show that only the tech sites had issues with AT&T and not the actual consumer.. anyways.. people who buy a phone that is due for an upgrade just a few months away are just stupid. why waste the cash? anyways..

Not that i want one. but i did go in and see how much it would cost to switch my Verizon phone for an iPhone. $600 bucks. but if i wait another year when it is time for me to upgrade that goes down to $199.

It just costs too much. And them my monthly bill would go up as well. Verizon does have great service and coverage but it is very expensive. I know I have three phones with them and one of them is for my teenage daughter. Ouch.

I'm on of those customers not buying the IPhone and my contract has been up for over a year now. I didn't purchase the phone for 2 reasons. First, the Droid is looking good to me. The second reason is the current version of the IPhone has been out for a while. I'm not buying the phone only to hear Apple is releasing a new version 2 months from now. At this point I'll be going with the next new phone that gets released either the Droid or the IPhone.

Soulsiphon said,
Serious smartphone users don't care about the iPhone anymore.

Apple's support is unbeatable at the moment, I'm sticking with my iPhone now and in the future - as a serious business user. It's the only phone that is replaced by the same phone if broken or malfuntioned - in a few minutes at the nearest t-mobile office...and they even make backup/restore if you need it...

Soulsiphon said,
Serious smartphone users don't care about the iPhone anymore.

Catch 22 really. You say serious smartphone user's don't care about smartphone, but given poor sales on android apps, serious developers tend to flock to iPhone because there's more chance of making money writing software....

bugsbungee said,

Catch 22 really. You say serious smartphone user's don't care about smartphone, but given poor sales on android apps, serious developers tend to flock to iPhone because there's more chance of making money writing software....

Yet the Android market is still growing very quickly, curious that if developers are all flocking to Apple huh?

bugsbungee said,

Catch 22 really. You say serious smartphone user's don't care about smartphone, but given poor sales on android apps, serious developers tend to flock to iPhone because there's more chance of making money writing software....

It's not just Android users that tend to pay less. I have a friend that is a consultant and says he started working with Apple more, because their users tend to be willing to pay more. If you have the money to buy into the whole Apple "life", then you have the money to spend on "extras". I bought an Android mainly because I didn't want to be "controlled" as much, but the carriers lock it down. Like wireless tethering, it's built-in to the OS, but Verizon wants me to pay $20/month for it. I already pay $112/month. But that's a whole other argument.

bugsbungee said,

Catch 22 really. You say serious smartphone user's don't care about smartphone, but given poor sales on android apps, serious developers tend to flock to iPhone because there's more chance of making money writing software....

That's fine for developers but even still, they apparently aren't buying their development devices through Verizon.

Quick Shot said,

Why?

Attractive alternatives? Competitive if not outright better data and calling plans through other carriers? If you have to ask why, enjoy your iPhone.

Soulsiphon said,
Serious smartphone users don't care about the iPhone anymore.

Why do people post **** like this? The phones still the number one phone out there. It would be even more popular if Apple weren't such greedy *******. The App Store makes the iPhone great. All other stores Android Market are full of games that look like they were made for the Atari 2600. Other than that its full of Anime porn.

I made my mistake and bought a HTC. My decision was based on cost. I wish I could go back though. I'm now stuck with this crap for 24 months.

SK[ said,]

Why do people post **** like this? The phones still the number one phone out there.

Not anymore. Android OS is number 1 in the world overtaking Symbian. That's why Nokia had to go with Windows Phone 7 as there OS.

Well I think it's because everyone I know has sussed out Apple's yearly upgrade of it's products, I know a few people that could buy now but are holding off for the next model.

Most people in Toronto have an iPhone. Even if they don't - my Focus gets mistaken or called an "iPhone" whenever someone sees it. Apple's brand awareness is amazing - not surprising though.
Almost everyone has or knows someone with one.

norseman said,
Most people in Toronto have an iPhone. Even if they don't - my Focus gets mistaken or called an "iPhone" whenever someone sees it. Apple's brand awareness is amazing - not surprising though.
Almost everyone has or knows someone with one.

I know one person with one.

Quick Shot said,
Is it true you can't talk and surf the web on an iPhone running on verizon?

Think so? I can't be sure though. And OT, if the sales were so great they'd talk about them right? Isn't that what everyone says all the time anyways?

Quick Shot said,
Is it true you can't talk and surf the web on an iPhone running on verizon?

It's true but honestly who gives a damn? There is not really a need for that anyways unless your a business customer. CDMA networks don't support that feature for some reason but if that's what's stops you from getting it or anyone else then go to AT&Ts crappy network fun filled times with dropped calls and all.

NoLiMiT06 said,

It's true but honestly who gives a damn? There is not really a need for that anyways unless your a business customer. CDMA networks don't support that feature for some reason but if that's what's stops you from getting it or anyone else then go to AT&Ts crappy network fun filled times with dropped calls and all.

Um. Not true. What about when you forgot your and your wife's wedding anniversary and need to lie to her while simultaneously making dinner reservations in Safari!?!?!

Yup.

NoLiMiT06 said,

It's true but honestly who gives a damn? There is not really a need for that anyways unless your a business customer. CDMA networks don't support that feature for some reason but if that's what's stops you from getting it or anyone else then go to AT&Ts crappy network fun filled times with dropped calls and all.


I've had the iPhone for att ever since they started offering it and I've had no problem with dropped calls. I just don't see the point of a phone not being able to surf the web while talking. Shouldn't a smart phone be start and do more than one thing at once? It doesn't matter if your a business customer or a high school kid. Why can't people have that option?

NoLiMiT06 said,

It's true but honestly who gives a damn? There is not really a need for that anyways unless your a business customer. CDMA networks don't support that feature for some reason but if that's what's stops you from getting it or anyone else then go to AT&Ts crappy network fun filled times with dropped calls and all.

More comments from someone who has probably never used AT&T. I've used an iPhone 3GS, Samsung Captivate (Android) and now a Samsung Focus (Windows Phone 7) on AT&T. Only phone that ever had dropped call issues... iPhone 3GS, have not had a single call issue with other handsets. Looking forwrad to LMAO when Verizon starts getting complaints about network quality that really result from that low quality handset that the iPhone appears to be.

NoLiMiT06 said,

It's true but honestly who gives a damn? There is not really a need for that anyways unless your a business customer. CDMA networks don't support that feature for some reason but if that's what's stops you from getting it or anyone else then go to AT&Ts crappy network fun filled times with dropped calls and all.

While I don't use it all the time, I have on quite a few occasions, needed to pull up GPS maps while on the phone, or look up something on Google. While I wouldn't be heartbroken if I lost it, it would be a huge inconvenience.

Quick Shot said,
Is it true you can't talk and surf the web on an iPhone running on verizon?

Same on any phone running on Verizon at the moment.

NoLiMiT06 said,

It's true but honestly who gives a damn? There is not really a need for that anyways unless your a business customer. CDMA networks don't support that feature for some reason but if that's what's stops you from getting it or anyone else then go to AT&Ts crappy network fun filled times with dropped calls and all.
I use that feature on a regular basis when making plans over the phone. And considering that Verizon was just caught with 10,000 dropped calls in Maryland to 911 in one day (that went unmentioned by Verizon until the FCC caught them), I'd hold off on holding dropped calls over just AT&T.

Quick Shot said,
Is it true you can't talk and surf the web on an iPhone running on verizon?

My iPhone will get on the wifi if you're talking, but so far I haven't noticed. I mean I've never done much of anything while talking to someone on my phone.

NoLiMiT06 said,

It's true but honestly who gives a damn?

Maybe I'm the odd one out but I actually multi task a lot of the time. Whether its on the phone and quickly checking the weather somewhere for making plans, checking something on Facebook we're discussing or even getting directions for someone. Just because you don't use it doesn't mean other people don't and I don't appreciate any network limiting my options.

Reacon said,
Apple has lost its initial and long-running appeal. Android is now all the rage, lol.

Or that a lot of people are under contract and don't want to pay a hefty ETF on AT&T to get it on Verizon or Verizon customers don't want to pay full price. That and Verizon didn't allow early upgrades like AT&T did on the iPhone 4. Then again Verizon had no other iPhone to upgrade from. I think more existing customers who couldn't upgrade yet would've if they could pay the subsidized price.

Reacon said,
Apple has lost its initial and long-running appeal. Android is now all the rage, lol.

Honestly, it could be true that the iPhone is loosing some steam. There are significantly more android phones available (so you get more choice). What I am beginning to wonder is whether or not the whole smartphone market is due for a crash.

Think about it. You either pay an ungodly price for the phone or you sign a 2 year contract. I think many or maybe it is just me... are sick of being servants to these companies. Next comes the big contract. You either go big or you go small and select the services you want like txt or data. Either way, you over pay for what essentially is a very crappy service.

I honestly think these companies... all of them are just evil. You honestly think that unlimited texting is worth $20 per month, that I have to pay significantly extra for insurance on a phone while I am under contract and that unlimited means 5gb or less without or without throttling? They have so got us all conditioned and wrapped right around their little thumbs.

One word sums up my feelings on this... pathetic. I honestly hope this turns out to be a fad and that we are not stupid enough to fall for this ****. Of course, if you look back at history... this is only going to get worse.

I really can't wait to see monthly charges of $200 for a single user plan and how my carrier has now decided that maybe a 2 gig limit is unlimited.

Martog said,

Or that a lot of people are under contract and don't want to pay a hefty ETF on AT&T to get it on Verizon or Verizon customers don't want to pay full price.

When this explination was used for the Windows Phone sales numbers, it was dismissed as wishful thinking because nobody wants a WP7.

azure.sapphire said,

Think about it. You either pay an ungodly price for the phone or you sign a 2 year contract. I think many or maybe it is just me... are sick of being servants to these companies. Next comes the big contract. You either go big or you go small and select the services you want like txt or data. Either way, you over pay for what essentially is a very crappy service.

I honestly think these companies... all of them are just evil. You honestly think that unlimited texting is worth $20 per month, that I have to pay significantly extra for insurance on a phone while I am under contract and that unlimited means 5gb or less without or without throttling? They have so got us all conditioned and wrapped right around their little thumbs.

One word sums up my feelings on this... pathetic. I honestly hope this turns out to be a fad and that we are not stupid enough to fall for this ****. Of course, if you look back at history... this is only going to get worse.

I really can't wait to see monthly charges of $200 for a single user plan and how my carrier has now decided that maybe a 2 gig limit is unlimited.

Ive said it before but ill say it again. SPRINT is my hero enjoying unlimited EVERYTHING (no silly data cap either) for 70 a month!

nohone said,

When this explination was used for the Windows Phone sales numbers, it was dismissed as wishful thinking because nobody wants a WP7.

Considering when WP7 launched at least on AT&T, a lot of users were probably locked into contracts with the iPhone, BB or one of their Android handsets. And WP7 is still new, lot of people did not know what to expect with it.

If I was still had no upgrade eligibility, I would not have paid $750 for my Verizon iPhone 4, I think $300 was stretching it, but I've paid that much for a normal phone YEARS ago, not very fond of the Verizon Motorola V710 fiasco I was brought into with that stupid phone.

Verizon had a solid Android line up launch last year with the DX, DINC, and D2 handsets, so a lot of people are locked in until at least the one year passes by (if they are eligible for a handset at subsidized after one year, I've always been since I've had a Storm 1).

Even with the reception issues with AT&T, I don't think people were going to flock to Verizon in droves exactly because of ETF's, though selling their old handset they could honest make it up.

That and people are waiting to see if the next gen iPhone comes to Verizon right away or not. The Verizon iPhone 4 was an out of cycle release on the iPhone so no one knows for sure now what will happen.

Reacon said,
Apple has lost its initial and long-running appeal. Android is now all the rage, lol.

Or their phone has lost appeal and consumers are looking into Windows Phone 7 and give it a try.

Martog said,

Or that a lot of people are under contract and don't want to pay a hefty ETF on AT&T to get it on Verizon or Verizon customers don't want to pay full price. That and Verizon didn't allow early upgrades like AT&T did on the iPhone 4. Then again Verizon had no other iPhone to upgrade from. I think more existing customers who couldn't upgrade yet would've if they could pay the subsidized price.


This wouldnt explain how they are selling less then they projected.. I am pretty sure a company that is worth over 300 billion dollars would take that into consideration when they form the amount of sales they are expecting.. If they sell less then expectations is means that the Iphone 4 is not as popular as they thought..
Just like the Kinect selling more then they expected showed that it was more popular then they initially believed..

Reacon said,
Apple has lost its initial and long-running appeal. Android is now all the rage, lol.

Or simply releasing it just a few months before the iPhone 5 was a plain stupid idea

Lachlan said,

This wouldnt explain how they are selling less then they projected.. I am pretty sure a company that is worth over 300 billion dollars would take that into consideration when they form the amount of sales they are expecting.. If they sell less then expectations is means that the Iphone 4 is not as popular as they thought..
Just like the Kinect selling more then they expected showed that it was more popular then they initially believed..

I think they just launched it at the wrong time, should've just waited until the upcoming iPhone this June/July and seen how it fared, as more people would have been eligible for upgrades. Verizon didn't do enough math to figure out that how many people on contracts wouldn't switch over, they thought more would and they didn't. It's definitely a huge oversight.

Chikita Labs is saying about 7.1% of iPhone traffic is Verizon. They also said Android traffic really hasn't changed, yet a 3% drop in AT&T iPhone traffic. The big loosers are Blackberries, Windows Mobile/Phone and WebOS to the Verizon iPhone currently. http://insights.chitika.com/20...res-the-growth-coming-from/

Considering the three big Verizon Android handsets came out spring/summer last year, yeah people aren't so willing to pay the hefty fee to switch to an iPhone, maybe when they can be a subsidized price. It was just the wrong time to launch it, but they wanted it out sooner than later, especially if they can snake the next gen iPhone this year. I'd like to see what happens when people can upgrade later this year to see what happens, nothing may really change for AT&T iPhone or Android usage, or one or both might see a decent drop to a Verizon iPhone, only time will honestly tell.

Ridgeburner said,

Ive said it before but ill say it again. SPRINT is my hero enjoying unlimited EVERYTHING (no silly data cap either) for 70 a month!

rather do AT&T again than get anywhere near sprint

Martog said,

I think they just launched it at the wrong time, should've just waited until the upcoming iPhone this June/July and seen how it fared, as more people would have been eligible for upgrades. Verizon didn't do enough math to figure out that how many people on contracts wouldn't switch over, they thought more would and they didn't. It's definitely a huge oversight.

Chikita Labs is saying about 7.1% of iPhone traffic is Verizon. They also said Android traffic really hasn't changed, yet a 3% drop in AT&T iPhone traffic. The big loosers are Blackberries, Windows Mobile/Phone and WebOS to the Verizon iPhone currently. http://insights.chitika.com/20...res-the-growth-coming-from/

Considering the three big Verizon Android handsets came out spring/summer last year, yeah people aren't so willing to pay the hefty fee to switch to an iPhone, maybe when they can be a subsidized price. It was just the wrong time to launch it, but they wanted it out sooner than later, especially if they can snake the next gen iPhone this year. I'd like to see what happens when people can upgrade later this year to see what happens, nothing may really change for AT&T iPhone or Android usage, or one or both might see a decent drop to a Verizon iPhone, only time will honestly tell.

1. it is very smart to release it now from the view of their share holders because you can get rid of old stock before you release the new phone..
2. I agree with you about blackberries dropping but disagree about windows phone.. its new and wont see much growth until the first few updates are out.. people are just waiting for many of these updates to get the phones.. also they just released the basic phones first and I believe they are going to release some real gems soon...
3.. You know that people are still buying new phones right? Its not like everyone that is going to get an Iphone has an android phone.. it is still growing at a pretty fast rate so this whole idea that people are not buying them because they are in a contract is a stupid excuse.. What you guys are explaining is Iphone saturation.. Thats like if HP released a new laptop and it did not sell very well and they said it was because everyone had just bought a new laptop so they are not switching..

and also.. you know that when a phone is released that not everyone signs a contract that day right? they will buy the phone over the next 6 months..

azure.sapphire said,
I've always thought that cell phones are waaay overpriced , this forces most people to sign a 2 year contract. I don't care how good the iPhone is, no phone is worth $ 750.00 dollars.
I think this is a scam which should be investigated by the Goverment.


Honestly, it could be true that the iPhone is loosing some steam. There are significantly more android phones available (so you get more choice). What I am beginning to wonder is whether or not the whole smartphone market is due for a crash.

Think about it. You either pay an ungodly price for the phone or you sign a 2 year contract. I think many or maybe it is just me... are sick of being servants to these companies. Next comes the big contract. You either go big or you go small and select the services you want like txt or data. Either way, you over pay for what essentially is a very crappy service.

I honestly think these companies... all of them are just evil. You honestly think that unlimited texting is worth $20 per month, that I have to pay significantly extra for insurance on a phone while I am under contract and that unlimited means 5gb or less without or without throttling? They have so got us all conditioned and wrapped right around their little thumbs.

One word sums up my feelings on this... pathetic. I honestly hope this turns out to be a fad and that we are not stupid enough to fall for this ****. Of course, if you look back at history... this is only going to get worse.

I really can't wait to see monthly charges of $200 for a single user plan and how my carrier has now decided that maybe a 2 gig limit is unlimited.


Living4Christ said,

Or their phone has lost appeal and consumers are looking into Windows Phone 7 and give it a try.

WP7 ? and lock yourself into a 2 years contract with a Museum relic as WP7 will be KINned by the end of the year ?

Lachlan said,


2. I agree with you about blackberries dropping but disagree about windows phone.. its new and wont see much growth until the first few updates are out.. people are just waiting for many of these updates to get the phones.. also they just released the basic phones first and I believe they are going to release some real gems soon...

Well the data is provided from Chikita, not me, and that probably includes Windows Mobile mostly, it doesn't seem they separated the two, though they said "Windows Phone" so hard telling where the decline was OS wise on their network.

alexalex said,

WP7 ? and lock yourself into a 2 years contract with a Museum relic as WP7 will be KINned by the end of the year ?

I wanted win7... but Verizon doesn't have it. So went to the apple store and bought the iPhone for $650 i think. I don't think they'll get the iPhone 5 anytime soon, but hey if they do I'll probably go get that too- phones are worth the $$$- I use them more than my laptops now.