Apple a Telecom $ Loser

Started by LongBlade, February 09, 2012, 09:10:06 AM

Previous topic - Next topic

0 Members and 2 Guests are viewing this topic.


For those of you who follow financial news I thought I'd share.

I found this article interesting. Since bringing on the iPhone, telecoms are in a net loss revenue position. But they keep supporting them because they feel they need to be players in the game.

QuoteSince Apple's iPhone debuted on Verizon's network in February 2011, Verizon's "EBITDA service margin" -- a closely watched metric that carriers use to measure their core profit as a percentage of their sales -- has tumbled.

Between 2009 and 2010, Verizon (VZ, Fortune 500) averaged EBITDA service margin of 46.4% per quarter. In the first quarter that the iPhone went on sale, that fell to 43.7%. Last quarter, when Verizon sold a record 4.2 million iPhones, its margin plunged to 42.2%.

All that is gold does not glitter,
Not all those who wander are lost;
The old that is strong does not wither,
Deep roots are not reached by the frost.