Verizon had their earnings call this
morning. And since they sell a lot of
iPhones (among other things), it was worth listening to for a whole host of
reasons—not least of which was to hear whether the issue of cell phone
subsidies would come up.
Low and behold, it did:
Now having said that, on the subsidy side of the
house, you can see that the price of the handsets continued to decline. We now
have the Windows platform in our mix, and we saw some steady, albeit slow,
increase in some of the uptake of that platform. But as we get more and more
platforms in the mix -- and now we have RIM out there again -- there is going
to the incremental competition, there will be subsidy reduction, as there was
in the basic phone history in the ecosystem.
—Verizon CFO Frank Shammo, January 19, 2013
There. They said it.
Jeff Matthews
Author “Secrets in Plain Sight: Business and Investing Secrets of Warren
Buffett”
(eBooks on Investing, 2012)
Available now at Amazon.com
© 2012
NotMakingThisUp, LLC
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content contained in this blog represents only the opinions of Mr.
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4 comments:
I am afraid I did not get why it was the most interesting comment. Thanks
Vijay, This may help.
https://www.linkedin.com/today/post/article/20130115152801-29478030-apple-s-new-reality?_mSplash=1
Am I reading into things, or did the underlying message underlying in that excerpt seem to be: "Sell/short Apple."
I love the "windows was steady, albeit slow" comment. Translation, we aren't selling many Windows phones.
In my view RIMM will be worse than Windows phones.
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