Apple 2.0

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Verizon's activations of older iPhones better than expected

October 18, 2012: 11:01 AM ET

Supply issues seem to have held its iPhone 5 activations to about 650,000 in September

Click to enlarge. Source: Company reports.

FORTUNE -- Verizon (VZ) announced Thursday that it activated 6.8 million smartphones last quarter -- 3.1 million iPhones and 3.4 million handsets running Google's (GOOG) Android. That compares with 2.7 million iPhones and 2.9 million Androids in Verizon's second quarter.

The company also said that 21% of its iPhone activations were on its LTE network, which suggests that roughly 650,000 of those activations were iPhone 5s and about 2.45 million were older models.

In a note to clients, Piper Jaffray's Gene Munster called the results a "slight positive" for Apple (AAPL).

Based on Verizon's report, it appears that non-iPhone 5 sales were down 9% q/q while we are currently modeling Apple to see a 35% q/q decline in non-iPhone 5 sales in September. The reason we were looking for a 35% q/q decline is due to the impact of customers waiting for the iPhone 5. The bottom line is that we are incrementally more comfortable with our 25 million September iPhone estimate.

AT&T (T) is scheduled to release its quarterly results next Wednesday and Sprint (S) the following morning. We'll get Apple's fiscal Q4 results Thursday evening after the markets close.

See also: How many iPhones did Apple sell last quarter? 

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Philip Elmer-Dewitt
Philip Elmer-DeWitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been following Apple since 1982, first for Time Magazine, and now on the Web for Fortune.com.

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