Tuesday, January 22, 2013

The Most Interesting Comment We’ve Heard All Day

 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

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vijay parikh said...

I am afraid I did not get why it was the most interesting comment. Thanks

Anonymous said...

Vijay, This may help.


LST said...

Am I reading into things, or did the underlying message underlying in that excerpt seem to be: "Sell/short Apple."

Ben said...

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.