Verizon Communications Inc.
) recently announced that it will offer three new Droid
) Motorola. The new smartphones - Droid Mini, Droid Ultra and
Droid Maxx - will be available in Verizon stores beginning Aug
20, for $99, $199 and $299, respectively, under a two-year
We believe the company's new set of smartphones would
add to its equipment revenues as well as promote the data
services of the company.
Verizon is riding high on smartphones with the introduction of
devices that would boost data revenue going forward. The
company's smartphone penetration increased to 61%. It activated
7.2 million smartphones during the first quarter, of which 28%
were new users.
The company introduced numerous devices to attract customers
to 4G LTE that covers over 28% of its total retail post-paid
connections. The new gadgets include Samsung ATIV Odyssey, the
) Z10, the Samsung Galaxy Note 10.1 tablet, the Verizon 4G LTE
USB Modem UML295 by Pantech, and the Verizon Jetpack 4G LTE
Mobile Hotspot MiFi 5510L by Novatel Wireless.
The company's 4G LTE Router - an Internet access gadget
compatible with both wired and Wi-Fi-enabled devices - will
likely gain popularity in the near term.
In addition, the company is also bent on providing early
smartphone upgrades to customers. The company is offering
frequent upgrade of devices to customers willing to pay the
purchase price in installments.
With no change in the company's service pricing, we believe
the company will gain from zero subsidies on phone upgrades by
offering the part payment facility. The company is spending
hugely to subsidize the handsets, which largely remains a drag on
Verizon, which operates with telecom giant
) currently has a Zacks Rank #3 (Hold).
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