Verizon’s Q2 earnings have come in to the tune of $31.5 billion in total revenue, a 5.7 percent increase over Q2 2013. An even bigger shift can be found with the total operating income of $7.7 billion, a 17.2 percent increase over Q2 2013. While companies as big as Verizon usually haul in large amounts of money each quarter, this marks an even bigger change, with a double digit percentage increase in income.
Verizon added 1.4 million net retail connections in Q2 2014. Of that, however, a startling 1.15 million were LTE-equipped tablets using Verizon’s network. The vast majority of those connections likely came from existing Verizon customers who used the More Everything plan to add a tablet for just $10 extra per month. With LTE-equipped tablets coming in at such a low price, most consumers purchase one and later will bump up their data plan to accommodate the extra device.
Net phone customers dropped significantly, from 940,000 in Q2 2013 to a mere 304,000 in Q2 2014. This dramatic shift is likely due to a saturation of the smartphone market as well as new competitors like T-Mobile, who are rapidly growing in subscriber base. But Verizon has settled into this new spot of using its existing customers to add new devices like tablets to continue to earn profit. It remains to be seen how long this strategy can work, but at the moment, Verizon has nothing to worry about.