Good News, Apple: Verizon iPhone Sales Jump 44%

With Apple's third fiscal quarter earnings report scheduled for next week, Verizon is giving us a hint at what we may be able to expect from iPhone sales, and the numbers look good. Verizon announced its second fiscal quarter numbers on Thursday with 3.9 million iPhones sold -- a 44 percent increase year-over-year.


Verizon quarterly iPhone sales jump 44 percentVerizon quarterly iPhone sales jump 44 percent

Verizon reported a 16 percent year-over-year increase in income at US$6.6 billion with a 22 percent operating income margin. The cell service provider reported $29.8 billion in revenue with $20 billion revenue from its wireless division.

BTIG analyst Walter Piecyk noted on Twitter that the iPhone accounted for half of Verizon's smartphone sales saying, "$VZ iPhone acts of 3.9 mil beat our est of 3.5 mil as $AAPL smartphone share remained over 50%."

With Verizon's quarterly iPhone activations up 44 percent, there's a good chance we'll see increases in AT&T and Sprint iPhone numbers as well. AT&T's second fiscal quarter earnings report is set for July 23, so its iPhone sales figures won't be available for very long before Apple's own earnings announcement, and Sprint's quarterly earnings won't be announced until July 30.

With T-Mobile officially offering the iPhone now, too, that adds another opportunity for increased sales.

Apple's third fiscal quarter earnings report is scheduled for Tuesday, July 23. Company executives said they're expecting between $33.5 billion and $35.5 billion in revenue, which is in line with the same quarter last year, but down compared to this year's second fiscal quarter.

Apple didn't release updated iPhone or iPad models during the quarter, so any increase in sales won't be coming from new product launches. With Verizon's year-over-year iPhone sales up by so much, however, interest in Apple's current iPhone lineup still looks strong.

The next iPhone update is expected this fall, most likely when iOS 7 is released. Apple hasn't announced new iPhone models yet, but knowing iOS 7 is coming some time in the fall, it's a good launch point for new hardware, too.

Assuming Apple does roll out new iPhone models this fall, we can expect an even bigger jump in quarterly sales because the upgrade hype will also fall into the holiday buying season, although the big numbers from those sales won't hit until the first fiscal quarter of 2014.

Apple's third fiscal quarter iPhone sales are expected to come in around 27 million units, and Verizon has already taken care of about 4 million of those. Assuming Verizon's sales figures are a good indicator of the iPhone's overall market performance, Apple's smartphone numbers next week shouldn't disappoint.

Apple is currently trading at $427.40, down 4.36 (1.01%).