Cell Phones : Verizon sells two million iPhones in the September quarter

Carrier Verizon Wireless, a joint venture of U.S. telecommunications firm Verizon Communications and UK multinational mobile network operator Vodafone, today announced financial results for the September quarter. Big Red sold two million iPhone units which represents a 300,000 units decline compared to the June quarter. Verizon was also behind rival AT&T which yesterday reported activating 2.7 million iPhones in the quarter out of a total of 4.8 million total devices.
In a separate statement, rival AT&T said it activated a million units of the new iPhone 4S on its network as of Tuesday, while Verizon made no mention of iPhone 4S in its quarterly filing. iPhone 4S went on sale in the United States, UK, Australia, France, Germany, Canada and Japan on Friday, October 14. The phone will roll out to 22 new countries later this month, with regional online Apple Stores in those countries accepting reservations beginning today.

Press Release

Verizon Generates Strong Wireless Results, Increased Cash Flow, and FiOS and Strategic Services Growth in 3Q

3Q 2011 HIGHLIGHTS
Consolidated
· 49 cents in diluted earnings per share (EPS), compared with 23 cents per share in 3Q 2010.
· 56 cents per share in adjusted EPS (non-GAAP), which excludes 7 cents per share in non-operational items, compared with 55 cents in adjusted EPS in 3Q 2010.
Wireless
· $15.0 billion in service revenues in 3Q 2011, up 6.1 percent year over year; data revenues of $6.1 billion, up 20.5 percent, representing 40.6 percent of service revenues; total revenues of $17.7 billion, up 9.1 percent.
· 2.4 percent growth in retail postpaid ARPU over 3Q 2010; retail postpaid data ARPU up 15.7 percent; retail service ARPU also up 2.4 percent.
· 29.0 percent operating income margin; record-high 47.8 percent Segment EBITDA margin on service revenues (non-GAAP), up 60 basis points year over year.
Wireline
· 138,000 FiOS Internet and 131,000 FiOS TV net additions, with increased sales penetration for both products; 4.0 million customers now subscribe to FiOS TV.
· 8.8 percent year-over-year increase in consumer ARPU; FiOS consumer retail revenues represent nearly 60 percent of total consumer revenues.
· 15.6 percent increase in strategic services revenues, representing nearly 50 percent of global enterprise revenues.
NEW YORK – With another strong showing by Verizon Wireless, and continued growth in FiOS and strategic business services, Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported third-quarter 2011 financial and operational results that keep the company on track to achieve its full-year earnings and revenue guidance.
Verizon reported 49 cents in EPS in the quarter, compared with 23 cents per share in third-quarter 2010.
Adjusted third-quarter 2011 earnings (non-GAAP) of 56 cents per share exclude 7 cents per share for a non-operational charge relating to a remeasurement, based on an actuarial valuation of pension plans. No adjustments were made for the previously announced $250 million (5 cents per share) negative impact in the quarter due to storm-related repair costs and a two-week strike affecting the Wireline segment. Comparable adjusted third-quarter 2010 earnings were 55 cents per share, excluding the impact of non-operational charges, the largest of which was related to pension and benefits remeasurements.
Well-Positioned for 4Q and 2012
“Verizon emerges from the third quarter in a strong position to accelerate growth,” said Lowell McAdam, Verizon president and chief executive officer. “We faced significant challenges in recent months, yet delivered results that keep us on track to meet our 2011 earnings and revenue guidance, with great momentum expected entering 2012. We continue to grow revenues from strategic products and to increase free cash flow through improved operating performance and disciplined capital spending.”
McAdam added, “Verizon Wireless delivered impressive results across the board in the third quarter, and we are geared up for an even better fourth quarter, with new smartphones, tablets and data devices coming to market. In FiOS, we expect to capitalize on pent-up demand and deliver stronger growth in the fourth quarter. In enterprise, the integration of Terremark and recent acquisition of CloudSwitch have significantly improved our competitive positioning.”
Verizon has targeted 2011 adjusted EPS growth of 5 percent to 8 percent from an adjusted base of $2.08 in EPS in 2010, and 2011 revenue growth of 4 percent to 8 percent on a comparable basis with 2010.
Consolidated Revenue and Cash Flow Growth
In third-quarter 2011, Verizon’s total operating revenues were $27.9 billion on a consolidated basis, an increase of 5.4 percent compared with third-quarter 2010. Total operating expenses were $23.3 billion, an increase of 0.7 percent.
Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter totaled $8.8 billion, up 19.2 percent year over year.
Cash flow from operating activities totaled $21.5 billion in the first nine months of 2011, and capital expenditures totaled $12.5 billion — on track to meet the company’s full-year guidance of $16.5 billion. From the $9.0 billion in free cash flow (non-GAAP, cash flow from operations less capex) over the first nine months, Verizon has paid $4.1 billion in dividends to shareholders, and in September the Verizon Board of Directors approved a dividend increase for the fifth consecutive year.
Verizon Wireless Delivers Strong Results
In third-quarter 2011, Verizon Wireless again delivered strong growth in revenues, retail customers and other connections, driven by increased smartphone penetration and increased retail postpaid ARPU (average monthly service revenue per user).
Wireless Financial Highlights
· Service revenues in third-quarter 2011 totaled $15.0 billion, up 6.1 percent year over year. Data revenues were $6.1 billion, up more than $1.0 billion or 20.5 percent year over year, and represent 40.6 percent of all service revenues. Total revenues were $17.7 billion, up 9.1 percent year over year.
· Retail postpaid ARPU grew 2.4 percent over third-quarter 2010, to $54.89. Retail postpaid data ARPU increased to $22.22, up 15.7 percent year over year. Retail service ARPU also grew 2.4 percent, to $53.21.
· Wireless operating income margin was 29.0 percent. Verizon Wireless generated $7.2 billion of EBITDA in third-quarter 2011, an increase of 7.5 percent year over year. Segment EBITDA margin on service revenues (non-GAAP) was 47.8 percent, up 60 basis points over third-quarter 2010 and up 240 basis points over second-quarter 2011. This was the highest Segment EBITDA margin on service revenues Verizon Wireless has ever reported.
Wireless Operational Highlights
· Verizon Wireless added 1.3 million total connections in third-quarter 2011, including 882,000 retail postpaid customers, and 367,000 wholesale and other connections. These additions exclude acquisitions and adjustments.
· At the end of the third quarter, the company had 107.7 million total connections, an increase of 6.5 percent year over year, consisting of 90.7 million retail customers and 17.0 million wholesale and other connections.
· At the end of the third quarter, smartphones accounted for 39 percent of the Verizon Wireless retail postpaid customer phone base, up from 36 percent at the end of second-quarter 2011.
· Retail postpaid churn was 0.94 percent in third-quarter 2011, an improvement of 13 basis points year over year. Total retail churn was 1.26 percent, an improvement of 17 basis points year over year.
· Verizon Wireless continued to roll out its 4G LTE mobile broadband network, the largest 4G LTE network in the United States, during the quarter. As of yesterday (Oct. 20), Verizon Wireless 4G LTE service was available in 165 markets covering a population of more than 186 million, across the country. With additional markets planned before year-end, the company’s 4G LTE network build-out is ahead of schedule and has already exceeded the company’s 2011 target of covering a population of 185 million.
· The company introduced five new 4G LTE devices: the DROID BIONIC by Motorola, Pantech Breakout, Samsung Galaxy Tab 10.1 tablet, Compaq Mini CQ10-688nr netbook and HP Pavilion dm 1-3010nr notebook. On Oct. 14, the Apple iPhone 4S became available on the Verizon Wireless 3G network. On Oct. 18, the company announced that the DROID RAZR by Motorola, a 4G LTE device, will be available in November.
· Verizon Wireless opened its LTE Innovation Center in Waltham, Mass., in July and its Application Innovation Center in San Francisco in August.
· The company continued to invest in and enhance its 3G network, the nation’s largest and most reliable 3G network.
· Verizon Wireless ranked highest in customer care among the major national wireless phone service providers in the J.D. Power and Associates “2011 Wireless Customer Care Performance Study.” Verizon Wireless was also named a Small Business Influencer Champion for 2011 by Small Business Trends and SmallBizTechnology.com.
FiOS, Strategic Services Transform Wireline Revenue Mix
Revenues and customers continued to increase for FiOS fiber-optic services, and sales of strategic services to business customers remained strong — countering the adverse impacts to Verizon’s Wireline segment in third-quarter 2011. FiOS and strategic services continued to become a larger percentage of the wireline revenue mix.
Wireline Financial Highlights
· Third-quarter 2011 operating revenues were $10.1 billion, a decline of 1.3 percent compared with third-quarter 2010. Consumer revenues grew 1.1 percent compared with third-quarter 2010.
· Consumer ARPU for wireline services was $94.20 in third-quarter 2011, up 8.8 percent compared with third-quarter 2010. ARPU for FiOS customers continues to be more than $146. Revenues for Verizon’s FiOS services to consumer retail customers generated nearly 60 percent of consumer wireline revenues in third-quarter 2011, compared with approximately 50 percent in third-quarter 2010.
· Global enterprise revenues totaled $3.9 billion in the quarter, up 2.1 percent compared with third-quarter 2010. Sales of strategic services — including Terremark cloud services, security and IT solutions, and strategic networking — increased 15.6 percent compared with third-quarter 2010 and now represent nearly 50 percent of global enterprise revenues. Terremark achieved record new sales bookings in third-quarter 2011. International revenue, which makes up approximately 15 percent of global enterprise, grew 9.8 percent year over year.
· Segment EBITDA (non-GAAP) was $2.2 billion in the quarter, including the $250 million impact from the storms and strike. This compares with $2.3 billion in third-quarter 2010. As a result, segment EBITDA margin (non-GAAP) was 21.4 percent in third-quarter 2011, compared with 22.7 percent in third-quarter 2010.
Wireline Operational Highlights
· Verizon added 138,000 net new FiOS Internet connections and 131,000 net new FiOS TV connections in third-quarter 2011. Verizon had a total of 4.6 million FiOS Internet and 4.0 million FiOS TV connections at the end of the quarter. With the clearing of FiOS installation backlogs caused by the storms and strike, Verizon expects to add at least 200,000 FiOS Internet and 200,000 FiOS TV customers in fourth-quarter 2011.
· FiOS penetration (subscribers as a percentage of potential subscribers) continued to increase. FiOS Internet penetration was 35 percent at the end of third-quarter 2011, compared with 31 percent at the end of third-quarter 2010. In the same periods, FiOS TV penetration was 31 percent, compared with 27 percent, respectively.
· Broadband connections totaled 8.6 million at the end of third-quarter 2011, a 2.8 percent year-over-year increase. FiOS Internet connections more than offset a decrease in DSL-based HSI connections, resulting in a net increase of 20,000 broadband connections from second-quarter 2011. Total voice connections, which measures FiOS Digital Voice connections in addition to traditional switched access lines, declined 7.6 percent to 24.5 million — the smallest year-over-year decline since fourth-quarter 2006.
· During the quarter Verizon continued to aggressively execute its global cloud strategy, expanding its portfolio of secure IT solutions and acquiring CloudSwitch, which will enable Verizon to boost industry adoption by simplifying the move to the enterprise cloud. Multinational companies including ARINC adopted Verizon enterprise cloud services during the quarter. In addition, enterprise customers including RWE of Germany, the University of North Carolina at Chapel Hill, Plunkett & Cooney Inc. and Smile Brands Inc. completed new agreements for a wide range of strategic advanced communications and information technology solutions.
· Verizon also continued to broaden the scope and capabilities of its global network infrastructure. The company completed the integration of Terremark data centers in Florida and Virginia with Verizon’s Global IP network; activated its first 100 gigabit-per-second network route in the United States; expanded its 100G capabilities in Europe; and completed deployment of advanced network equipment on its global network in Singapore and Sydney.

Tech : Georgia Tech spies on nearby keyboards with iPhone 4 accelerometer, creates spiPhone

 

Ever plopped your cellular down next to your laptop? According Georgia Tech researchers, that common scenario could let hackers record almost every sentence you type, all thanks to your smartphone's accelerometer. They've achieved the feat with an impressive 80 percent accuracy using an iPhone 4, and are dubbing the program they've developed, spiPhone. (Although the group initially had fledgling trials with an iPhone 3GS, they discovered the 4's gyroscope aided in data reading.) If the software gets installed onto a mobile device it can use the accelerometer to sense vibrations within three-inches, in degrees of "near or far and left or right," allowing it to statistically guess the words being written -- so long as they have three or more letters. It does this by recording pairs of keystrokes, putting them against dictionaries with nearly 58,000 words to come up with the most likely results.

The group has also done the same with the phone's mics (which they say samples data at a whopping 44,000 times per second vs. the accelerometer's 100), but note that it's a less likely option given the usual need for some form of user permission. Furthermore, they explained that the accelerometer data rate is already mighty slow, and if phone makers reduced it a bit more, spiPhone would have a hard time doin' its thing. The good news? Considering the strict circumstances needed, these researchers think there's a slim chance that this kind of malware could go into action easily. Looks like our iPhone and MacBook can still be close friends...

Cell Phones : Sprint explains iPhone 4S unlocking policy

 Following yesterday's PR debacle, the final word from Sprint appears to be as follows:

"Sprint's policy is to have the iPhone 4S SIM locked to our network domestically and internationally. At launch, the International SIM will be unlocked. We do expect a SIM lock to be pushed to the devices shortly after launch. We will then allow existing customers in good standing to unlock the SIM for international use if needed in the future."

So, if we're reading that correctly, the iPhone you purchase and activate will be unlocked. Then, a SIM lock will be "pushed" to your device. But, if you've been a good, policy-abiding customer, your iPhone can then be unlocked manually by Sprint. Who knows what'll happen if you buy your phone and flee to a non-extradition country before Sprint comes knocking at the door, shackles in hand. Will you be left to live in peace with your newly-acquired international Micro SIM? Will you need to plead your case before a tribunal of mobile carrier overlords? Only time will tell, we suppose, or perhaps further clarification from Sprint.

 

Press Release

Sprint's policy is to have the iPhone 4S SIM locked to our network domestically and internationally. At launch, the International SIM will be unlocked. We do expect a SIM lock to be pushed to the devices shortly after launch. We will then allow existing customers in good standing to unlock the SIM for international use if needed in the future.

Customers can sign up for one of our international rate plans and use this phone all over the world. When traveling internationally, there is a setting that must be turned on within the device to connect to GSM. The phone will work with a SIM that is provided within the device out of the box. International voice and data charges are on a pay-as-you-go basis and vary based on the country where the customer is using their phone; a list of rates is available at www.sprint.com/international.

Sprint offers two international voice plans that customers can subscribe to for discounted voice rates:

* The Canada Roaming add-on is $2.99 per month and all calls placed from Canada are only 20 cents per minute. Without this add-on, calls from Canada are 59 cents per minute.

* The Sprint Worldwide Voice add-on is $4.99 per month and offers discounted rates in countries around the world. For example, calls from Italy are $1.69 per minute with this add-on or $1.99 per minute without the add-on; calls from Peru are $2.29 per minute with the add-on or $2.49 per minute without it.

Sprint does supply notifications of data roaming charges to protect customers from high costs. Notifications are sent to the customer's preferred method, either text or email, and are sent once the device exceeds approximately $50, $250, $500 and $1,000. To protect the customer from additional charges, the device's international data roaming capability will be suspended after the customer exceeds approximately $1,000 of international data charges in a billing cycle.

Cell Phones : Sprint to offer three levels of iPhone service, 'yellow' AppleCare+ repairs will cost $49

Thinking about buying an iPhone 4S from Sprint? Depending on how clumsy you tend to be with mobile devices, you might want to consider adding the $99 AppleCare+ option at purchase, since those Total Equipment Protection plans are definitely out. A Sprint employee wrote in to detail us on upcoming service procedures, which include grouping a damaged device within three categories -- green, yellow and red -- after diagnosis. As you might imagine, green repairs are the easiest to deal with, and include 'minor damage' (i.e. cracked screens are out). These repairs will be handled for free within the first year for all customers, and within two years for those who purchased AppleCare+. Next up, the yellow category covers damage that doesn't fall within green, but is still repairable. Non subscribers will pay $199, while those with AppleCare+ will pay $49. Klutzes beware: you're limited to two yellow repairs, regardless of whether or not the device is in warranty. Finally, the red category is reserved for iPhones that provide little function beyond holding down a stack of papers or propping open your door. You'll need to pay the full replacement cost for red-labeled phones. None of these repairs will be handled in store -- iPhones will be shipped to Apple, though you're welcome to start the process at Sprint. Our recommendation: reach out to Apple directly, since your iPhone is probably headed there either way. And if you want AppleCare, don't forget to buy it at launch.

Cell Phones : Apple iPhone 4S pre-orders exceed one million in first 24 hours

Last year's iPhone 4 launch brought more than 600,000 pre-orders within the first 24 hours. This year, that number nearly doubled, topping one million within one day of the device's pre-order availability through AT&T, Sprint and Verizon. Those that haven't pre-ordered the iPhone 4S can line up at Apple stores beginning at 8 a.m. on October 14th, or you can try your luck at pre-ordering now, though you may need to wait an extra week or two to get your hands on Apple's new iOS smartphone.

 

Press Release

iPhone 4S Pre-Orders Top One Million in First 24 Hours

CUPERTINO, California-October 10, 2011-Apple® today announced pre-orders of its iPhone® 4S have topped one million in a single day, surpassing the previous single day pre-order record of 600,000 held by iPhone 4. iPhone 4S is the most amazing iPhone yet, packed with incredible new features including Apple's dual-core A5 chip for blazing fast performance and stunning graphics; an all new camera with advanced optics; full 1080p HD resolution video recording; and Siri™, an intelligent assistant that helps you get things done just by asking.

"We are blown away with the incredible customer response to iPhone 4S," said Philip Schiller, Apple's senior vice president of Worldwide Product Marketing. "The first day pre-orders for iPhone 4S have been the most for any new product that Apple has ever launched and we are thrilled that customers love iPhone 4S as much as we do."

iPhone 4S will be available at all 245 Apple retail stores in the US beginning at 8 a.m. local time on Friday, October 14. Every customer who buys an iPhone 4S at an Apple retail store will be offered free Personal Setup service, helping them customize their iPhone 4S by setting up email, showing them new apps from the App Store™ and more, so they'll be up and running with their new iPhone before they leave the store.

iPhone 4S includes iOS 5, the world's most advanced mobile operating system with over 200 new features, and iCloud®, a breakthrough set of free cloud services that work seamlessly with your iPhone, iPad®, iPod touch®, Mac® or PC to automatically and wirelessly store your content in iCloud and push it to all your devices.

Pricing & Availability
iPhone 4S comes in either black or white and will be available in the US for a suggested retail price of $199 (US) for the 16GB model and $299 (US) for the 32GB model and $399 (US) for the new 64GB model.* iPhone 4S will be available from the Apple Online Store, Apple's retail stores and through AT&T, Sprint, Verizon Wireless, and select Best Buy, Target and Walmart stores and select Apple Authorized Resellers. iPhone 4 is available for just $99 (US) and iPhone 3GS is available for free with a two year contract.

iPhone 4S will roll out worldwide to 22 more countries by the end of October including Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Mexico, Netherlands, Norway, Singapore, Slovakia, Slovenia, Spain, Sweden and Switzerland.

*Qualified customers only. Requires a new two year rate plan, sold separately.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.

Cell Phones : Apple iPhone 4S now shipping in 'one to two' weeks, over 200,000 AT&T pre-orders in first 12 hours

If there was any question of how hot a tamale Apple's iPhone 4S would be, the answer's edging toward muy caliente. AT&T's stated that the iPhone 4S has ushered in its best iPhone launch to date, receiving over 200,000 pre-orders for the device during the first 12 hours of availability (crediting its success to having the only US version operating over 14.4Mb/s HSPA+, aka FauxG). While that's good news for Ma Bell, as of today, you'll be looking at a wait time of "one to two weeks" after placing an order for this latest iThing (Sprint and Verizon included). We've yet to hear how the latter two telecoms have fared, but we'd imagine it won't be a secret for too long -- the iPhone 4S is officially available on October 14th, after all. 

Press Release

AT&T Statement on iPhone 4S Preorders

DALLAS, Oct. 7, 2011 /PRNewswire/ -- AT&T has seen extraordinary demand for iPhone 4S with more than 200,000 preorders in the first 12 hours alone, the most successful iPhone launch we've ever had. It's obvious customers like AT&T's 4G network, which is the only one that lets their iPhone download twice as fast and talk and surf simultaneously.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

About AT&T

AT&T Inc. (NYSE: T) is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile broadband and emerging 4G capabilities, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T | DIRECTV brands. The company's suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising.

Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com. This AT&T news release and other announcements are available at http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or follow our news on Twitter at @ATT.

© 2011 AT&T Intellectual Property. All rights reserved. Mobile broadband not available in all areas. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.

Cell Phones : Apple wants to 'talk iPhone' on October 4th

Well, it's about freaking time! Apple has finally begun sending out invites for its upcoming press conference, and the company's being none too subtle with the hints, offering up some familiar app icons in the artwork and the tagline "Let's talk iPhone." As to whether it'll be an iPhone 5, 4S or some other new formation, we'll all have to wait until the event to find out