Verizon May Owe Apple $14B Over Slow iPhone Sales

[exfileme]

Verizon may owe Apple big money thanks to lackluster iPhone sales.

Verizon May Owe Apple $14B Over Slow iPhone Sales : Read more

 

[tntom]

We have been warned. We know what comes next.

Don't worry about it! We have already introduced erroneous billing errors that will either go unnoticed by the customer or they will give up after 2hrs on hold with our billing department.

 

[PedanticNo1]

Took long enough.

 

[Dark Lord of Tech]

Iphone's can't touch the newest droids.

 

[JOSHSKORN]

Now might be a good time to re-introduce that $30 unlimited data plan for iPhone users.

Bear with me here...get the iPhone, get the data plan, then switch back to Android.

 

[anononon]

Good, I hate verizon and they are def. the poster child of wireless d-bags.

 

[Martell1977]

This explains why when I went into Verizon to upgrade my phone the CSR kept trying to push an iPhone on me. I asked about the Galaxy S3 and was told the iPhone 4 was better. I asked about a Windows Phone and was told that iOS was better. No matter what I said, the CSR stated the apple was the way to go.

I ended up getting a Nokia Lumia 822 Windows Phone (which is great, no complains at all..so far). No matter how many times I told the CSR I have no interest in apple products, he wouldn't stop.

 

[Azn Cracker]

fire sale please!

 

[acadia11]

Thank Gawd I love my bberry Z10! Best browser on a phone I've ever used, best keyboard too.

 

[rwinches]

It may well be that Verizon does not offer an unlimited data plan.
http/www.whistleout.com/CellPhones/Unlimited-Data-Plans-For-Cell-Phones

 

[bebangs]

This is how apple sell business. If you want to sell apple products, there's a minimum amount to meet, too bad for verison it's 25billion. sucks to be you.

 

[razor512]

Guess they should stop ripping people off on the phones. offer a firesale. latest iphone for $129 (no need to be a verizon wireless customer)

that shortfall will be done overnight and they will likely not really lose much money at all. (the iphone has a massive profit margin and apple and verizon both make a huge chunk on the sale price)

 

[bustapr]

they wanted to deal with apple and sell their own souls to be able to sell the phone, they suffer the consecuences. this is what happens when big companies get overconfident enough to make the deal with the the one company that would no sooner screw over their customers in a court than theyd renegotiate anything.

if apple is in any way half smart, they would waver this contractual agreement and negotiate another deal with verizon. if apple were to pursue the owed money, theyd be down one major carrier and the stocks would have the biggest plummet theyve ever seen. verizon would have troubles with this debt and apple would take them to court, all the while investors start going ape shit because sales keep falling and apple is too preoccupied with screwing over theyre major customer in court to care.

I dont really like verizon, but I wouldnt want them to go down(with all those thousands of USA jobs they carry). apple would do good in not playing the bad guy in this situation. and verizon would do good in tuning down the cockiness.

 

[digiex]

That will hurt the investors pockets.

...In future news... Verizon files for bankruptcy due to sluggish iPhone sales.

 

[Vorador2]

Dealing with the devil will get you burned.

 

[rwinches]

Heres another reason it sucks to have an iPhone deal or any other like Galaxy
"$30 billion each year replacing lost and stolen devices"
http/www.huffingtonpost.com/2013/07/13/smartphone-black-market_n_3510341.html?utm_hp_ref=technology

 

[EddieLomax]

Mind blowingly dumb decision to sign up to selling a quantity of a future product that did not exist at the time without some sort of safety clauses.
If they were smart then they should have added a clause tying the minimum quantities to worldwide numbers, so if everyone sells less of them then they don't get burned like this.

While I guess the execs were not smart with the companies money they probably were obscenely well paid, so smart with their own money...

 

[CaedenV]

Talk about an akward situation!
Apple is no longer the king of the hill and is quickly falling out of the lime light with investors and those that they do business with. VZW on the other hand has taken a commitment that was unrealalistic.
If apple sues for the money then they will at the very least loose a vendor that they need. If they let verizon go scott-free then I am sure there are several other vendors who will follow suit.
My bet is that verizon will make some claim that sales were slow because Apple failed to deliver a compelling product which was promised at the signing of the contract. The 4s was a big step up from the 4, but still lagged behind others. The 5 brought some platform changes, but generally received bad press, while the 5s or 6 which is coming down the line will bring even more questionable changes to the OS while falling further behind on hardware. The release with new hardware will push a lot of units, but not enough to cover the gap that is coming.

 

[hotice]

If Verizon was smart they would tell Apple they're not giving them any extra money they owe because the iPhone isn't worth selling. If Apple is ok with that Verizon will continue to sell the iPhone. If Apple doesn't like that Verizon will not sell them anymore. That would hurt Apple much more than Verizon.

 

[lamorpa]

14B of Apple phones, or 14B of outdated iPhone 5's and antique iPhone 4/4S's?