Jan 24 AT 9:13 AM Anthony Domanico 41 Comments

Verizon posts a $2.02 Billion loss in Q4 despite record revenues; iPhone sales outpace Android


Verizon has just announced their operating results for the final quarter of 2011. Big Red saw a $2.02 Billion loss due largely to a $3.4 Billion pension revaluation charged in the quarter. The loss is down from a $2.64 Billion profit in the Q4 2010. The loss comes despite outstanding revenues generated in wireless (record-breaking) and FiOS business lines.

The other main factor in Verizon’s 4th quarter financials is the iPhone, which Verizon and anyone else who carries the device sells at a loss in an attempt to bring in new customers to sign up for hefty voice and data plans. Verizon sold over 4 million iPhone’s in the 4th quarter, comprising 52% of Verizon’s total smartphone sales for the quarter, and placing iPhone sales well ahead of sales of Android devices.

We fully expect Verizon to return to profitability in the next quarter, as the pension charge was a one time charge against earnings Verizon needed to put on the books. Verizon saw a 19% increase in data sales, and a record 13% increase in revenue from their wireless business, and Verizon would have had a profit of $1.38 Billion if they hadn’t incurred the pension charge. Quite the strong quarter for a $2.02 Billion loss if you ask us.

Verizon ended the year with an astounding $70.2 Billion total revenue, up nearly 11% from 2010 performance. All in all, Verizon’s having one hell of a year, a trend that’s likely to continue well into 2012.

Via: Bloomberg

Source: Verizon

Anthony loves all things technology, from hardware to apps and games. You can connect with him via Google+ or Twitter by clicking one of the fancy doo-dads above.

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  • Ivan Samuelson

    Maybe if Verizon would allow Motorola and others to unlock the boot loaders, they’d pull more people in?

    Are you listening Verizon? Are you?

    • Evan Halley

      Not enough people that it would matter.

      • http://www.anthonydomanico.com Anthony Domanico

        yeah, i second this. plus, the people who care about bootloaders are getting the galaxy nexus.

        • NegativeOne13

          Beat me to it.The vast majority of Android junkies that reupped or came over got the GN. I reupped to a Rezound…. then returned for GN.

          • Hue Three of Five

            What about people that like Motorola for their outstanding hardware, build quality and battery life but want a un-encrypted bootloader too. What are their options.

          • Jorge Eslava

            @Hue Three of Five There are no options for that criteria at this time.

          • pjax

            @Hue Three of Five
            that would be me. and the answer is “pray to digital heavens that the popularity of the device attracts a developer community and finds a way to bypass the bootloader”

            I’m now running MIUI on a D2G

    • chris

      They have a nexus and HTC just unlocked rezound bootloader. It isn’t Verizon it is moto. Are you listening??

      • http://www.technogasms.com Sean Riley

        The good news is that I think Google figured out a way to deal with Motorola locking their bootloaders.

    • Keep me simple

      What’s a boot loader? Wait, don’t tell me, I do not care! I have lot’s of other thing’s in my life to be expert at and that I am interested in. Fixing some arcane software problem on my phone does not interest me, I just want to use it to make calls and get information.
      My retirement is heavy into Apple stock (I bought most of it at 16 when everybody was loving XP) so seeing IOS catch up to Android market share is big to me.
      It probably happened because if you need to know how to fix a boot loader to keep an Android phone working, most people will pass if given a choice.

      • Bob,Boulder, Colorado

        congrats, good choice on picking up Apple. Apple generally does very well during holiday quarter. Have to wait and see how they do in Q1 of 2012

      • Bob,Boulder, Colorado

        But the present performance of Apple though incredible, does have potential future problems. Apple makes 95 percent of its profits from hardware sales and they are squeezing companies like Verizon dry, lets see how long telecom operators hold up.

      • Bob,Boulder, Colorado

        Apple is the only company making any sort of money from the smartphone explosion. All the others the telecom operators, the commodity suppliers are just hanging on for dear life. In a system, everybody needs to make reasonable money as we are all selfish people.

      • erik

        wanting an unlocked bootloader has nothing to do with keeping an android running. it’s a customization thing. why are you even on this website if you’re that ignorant about android and in bed with apple? i think they both have their place, just that your comment about the bootloader leads me to believe that you don’t have the slightest clue what you’re talking about.

        • jay miller

          I have to believe Apple pays bloggers to comb/troll android sites and articles. Another observation, ever notice how angry and smug they can be. The best endorsement for android is iFruits cofounder wishing his IPHONE COULD DO EVERYTHING HIS ANDROID DOES…haha

      • Richard Yarrell

        Just another CLUELESS IPHONE USER. It’s actually amazing how DUM iphone users really are. What’s even more amazing is that the most useless comments will come after i post this comment from my Gnex. ie @squiddy20 the WORST TROLL EVER…

        • squiddy20

          It’s actually amazing how “dum” you are Richard. “Dum” is actually spelled “dumb”, so by insulting someone else about how “dum” and “clueless” they are, you’ve only served to insult yourself. I’ve told you time and time again, you make huge errors, I point them out, and then you make even more ridiculous errors in trying to insult me. Quite sad.
          Also, wouldn’t the “worst troll ever” be someone like yourself who fails miserably at just about everything? I mean, when was the last time you got something right? If anything, I believe I’m a “great” troll because you have yet to make an insult/rebuttal that I can not come back from. Seriously, children could come up with better insults/rebuttals than you ever have. I “applaud” your effort at trying though. Have a nice day! :)

    • Jeff Pan

      Hopefully next quarter android outsells iphone

    • Jon Garrett

      maybe they should have left the iPhone alone and focused on Android.

    • dcdttu

      I think it’d be much more beneficial if Verizon limited the amount of Android phones they sold. Having 50 different models doesn’t help anyone if they’re all cheap looking compared to the iPhone. Each manufacturer should have 2 models, max. They should be fully supported for 2 years, minimum, including OS updates. One model from each manufacturer should be a lust-worthy premium model that is stock Android, and gets updated ASAP.

      • Ed

        RIGHT> Everybody should just do exactly as you think is best.

        Four + carriers pushing the same exact thing with different hardware = nearly pointless. Carrier modifications to Android are here to stay, and with good reason! They need to protect the brand. I do believe all bootloaders SHOULD be unlockable so those in the know can get what they want, but the vast majority of customers DON’T CARE.

        I agree with all PREMIUM phones being supported for 2 years minimum. I agree that 50 different Android models is excessive. I just don’t agree with the “stock Android” hype. I run stock Android because I like it, and that’s why I bought a nexus, but many people don’t care or actually prefer the carrier skins.

  • Mrdntcare

    f*** verizon anyway. Overprized overhyped wireless company. Idiots out there pay over $100-140 for phone bill thats not even unlimited. Lol

  • amgala

    Maybe VZW shouldn’t delay their top tier phone releases week after week, and maybe they should have actually marketed the GNex when it was finally released.

    • NotRelevent

      I’ve seen quite a few nexus commercials on TV since it launched.

  • Confused

    Why is every other website reporting how good Verizon did in Q4 2011

    • redraider133

      Because they had record profits and added over a million customers. This pension thing is just a one time thing which makes it look like they didn’t have a good quarter when in fact it was the complete opposite.

  • Derek

    Their Android sales were down because most people out to get a new Android phone were holding off waiting until the Galaxy Nexus came out. Watch first quarter sales this year. Android will be a lot higher. The Galaxy Nexus is selling well.

    • http://droidsamurai.blogspot.com DroidSamurai

      As much as I wish this is true, I am afraid this is just going to be a dream of Android fans — with next to non-existent promotion from VZW, the sales of the Galaxy Nexus probably won’t beat the RAZR … it may not even beat the Rezound.

      • Gcubed

        I’m not sure we watch the same TV, or you don’t watch sports. I see multiple Galaxy Nexus commercials per day

        • Hue Three of Five

          I have seen two total Galaxy Nexus commercials in my area since the phone came out. If you ask the average person what Android phone they would buy, what would they say?

          • http://droidsamurai.blogspot.com DroidSamurai

            Same here. And, that includes the cheap, infomercial kind of commercial that co-features Samsung Stratosphere, and then there’s the commercial that highlights more about Google+ than the Galaxy Nexus. On the other hand, RAZR’s commercials are probably aired 10 times more.

            Look, I love my Galaxy Nexus (I bought 4 for my whole family), but it’s fairly obvious that Verizon did not and does not want to promote it, for whatever reasons that are beyond my IQ. In fact, I have a feeling that the whole reason why Verizon wanted a temporary exclusivity on the Galaxy Nexus is to block the other carriers from having it to compete with the RAZR during the holiday season, which it invested a lot of money into.

  • spazby

    I am sure that some people waited for nexus but the reality is that there is still enough stupid people out there who think that they have 4g just because there is a “4″ on their iphone…

  • epps720

    Funny how they state here that Verizon had a $2.02 Billion loss while on one of the other phone tech sites they claim that Verizon sees record revenue. The reality is that Verizon did have a very good quarter but as the article says they had the big write off.

    • NotRelevent

      Re-read the article again. Especially the last paragraph.

  • dpleus

    To those saying that Android and Me is reporting incorrect information, as compared to other sites, this article does state “Verizon would have had a profit of $1.38 Billion” if you did not include the pension charge. It is not that the information is wrong, it is just a more complete picture of Verizon’s profit/loss statement for the Quarter and more reflect the Net and not the Gross. Kind of like your Gross versus Net income for the year when you look at your W2 statements. Come the end of the fiscal year, Verizon will be posting a Net profit.

    Now, having said that, I think there is no reason that VZW cannot adjust their plan rates and either offer more service or lower rates, without hurting their bottom line. Unless of course they take these profits and re-invest them in to the company’s infrastructure, so they may be able to avoid these nationwide 4G-LTE crashes.

    • jay miller

      The only re investing V will be doing is to their own pension, as the article states…

  • http://www.infotainmentempire.com pekosROB

    Now I see why Verizon was trying to get that $2 fee for paying your bill by phone! $2.02B loss in a single quarter sure can sting!

    Release less than 12 phones a year… I’m sure one a month can’t be too difficult… but it probably is for them, especially since OEMs are making phones like crazy.

  • e1

    Only reason ppl get the iphony is because of the publicity it gets by dumbass celebs thinking its really a good device when they fail to see the galaxy nexus is a billion times more advance but o well at the end there’s a reason why Android still is there biggest rival

  • droilfade

    “placing iPhone sales well ahead of sales of Android devices.” Liars! Lol…. Last year there was a lot of close competition between the two….This might be the decisive year..ANDROID FTW!!!

  • guardianali

    52% iphone to what..45 percent android? That is not “WELL outpacing” ..that is called barely out pacing.
    Also the loss isnt just cause of a one time pension fee. Its also due to the fact they are spending mad amount of money to deploy and be a leader in 4g LTE.

  • honourbound68

    It was an astute move to take a one time charge. The present laws allow Verizon to spread the loss over several years. but by taking the be time charge, Verizon can use interest rates (which have nowhere to go but up) to fund the pension plan. For example, if you had to save $100 in 10 years and were saving $9.80 at 2% interest (which is $10), if interest rates go up to 5% then you’d only have to save $9.52 to get that $10 goal per year. In essence, they sacrificed the earnings from one good year where wall street and investors won’t penalize them for the move in order to have potential big savings that will benefit the bottom line in future years.