Verizon's Q2 Earnings Fall Short of Projections Due to Slow Smartphone Sales

Monday, 22 July 2024, 11:02

Verizon posted second-quarter revenue of $32.8 billion, falling short of the projected $33.06 billion. The company attributes this decline to a significant reduction in smartphone upgrades among consumers. However, analysts believe that the upcoming release of Apple's new AI-driven iPhones could rejuvenate sales in the near future. Despite the revenue miss, Verizon's net addition of 148,000 monthly bill-paying wireless subscribers surpassed expectations, indicating positive user growth.
Yahoo Finance
Verizon's Q2 Earnings Fall Short of Projections Due to Slow Smartphone Sales

Verizon's Financial Performance

In its latest earnings report, Verizon revealed a revenue of $32.8 billion for the second quarter, which was less than the analysts' average estimate of $33.06 billion.

Reasons for Revenue Decline

The company is facing challenges due to a historically low number of consumers upgrading their phones. Despite this, there are indications that this trend may shift with the anticipated release of Apple's new smartphones featuring artificial intelligence.

Subscriber Growth

On a positive note, Verizon recorded a net addition of 148,000 monthly bill-paying wireless subscribers between April and June, which exceeded analysts' forecasts of 127,870 additions.

Conclusion

While Verizon's revenue has dipped due to sluggish phone upgrades, the company is still experiencing growth in its subscriber base, suggesting resilience in the face of market challenges.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe