Verizon could owe Apple $14 billion

Because of slower-than-expected sales, Verizon now must double its iPhone sales of last year. If it falls short, the company could be on the hook for as much as $14 billion, Moffett Research said in a report released this week.

That’s an incredible amount of money to pay because you didn’t sell as many iPhones as expected. However, I don’t know of any other carrier in the world that hasn’t met sales expectations.



  • samdchuck

    Yeah, but did you know that Verizon hadn’t met sales expectations before this article?

  • Hypothesard

    I don’t know for a fact how It’s done in the US, but I think (Because I don’t Know) there are two conflicting things in here :

    1 — Carrier’s contract with Apple for a minimum of X units sold per quarter/year with penalties when not meeting that minimum.

    2 — Incentives paid by Samsung, HTC, Nokia etc. to Sales people which have literally no incentive to sell iPone to clients, quite to the contrary as their bonus is obtained selling everything but iPhones.

    Time for Verizon either to pay from their pockets bonuses to their sale personnel for iPhone units sold or put an end to the bonus paid directly by the other brands to Verizon’s sales personnel

    Either way some parties will get hurt (be It either Verizon or Sales Personnel along the Brands who pay bonuses per units sold as Apple covered Its bases)

  • the Ugly Truth

    VZ should know better not to try to “kill” the iPhone…

  • http://www.johncblandii.com John C. Bland II

    Do other carriers have similar agreements?

    • http://mangochut.net/ mangochutney

      They most certainly do. It’s a common practice to agree upon minimum purchase quantities in order to pay a lower per-unit price.

      If Verizon is falling short of that agreement, they should pay.

      • http://www.johncblandii.com John C. Bland II

        Gotcha. Thx for the clarity.

  • Charlie

    I tried to by a Verizon iPhone and the sales person looked like he wanted to punch me in the throat for asking. I drove the extra 25 minutes and went to the Apple store. No one wants to buy a phone from a dick.

    • Moeskido

      Of course he behaved like a dick. You were trying to cheat him out of a spiff. What right did you have to walk into a retail establishement, knowing what you wanted, and actually ask for it by name? Harumph.

  • Kunal

    Verizon is truly horrible and I suspect people just want to buy from nicer providers. We’ve been trying to get Verizon to put some fiber into our office for about 5 months now, and they’re always unresponsive / on vacation and it’s such an ordeal. They have a monopoly in Manhattan, and so they just don’t give a damn about customer service.

    • Moeskido

      Verizon has no incentive to build out more infrastructure when it can simply let the old phone lines decay from neglect while still charging premium prices for service through them.

      The only people in my neighborhood who can get FIOS are the owners of two-million-dollar homes who can make private arrangements with Verizon. Which they do.

      This is what deregulation has given us.

  • Billy Razzle

    BWAAHAHAHAHAHA!!!! I hope verizon has to pay them every penny!

  • Ric

    The Article talks about 23.5 Bil. for this year. Lets say 600$ is the typical sale: That would be roundabout 40 Mio Units. Verizon WIreless has about 100 Mio customers…. I think Mofett has its numbers wrong since they start from a very shakey Point: (Quote) The firm said that Verizon Wireless’ parent company, Vodafone, reported that Verizon had $45 billion in purchase commitments over a three-year period at the end of 2010. Moffett believes most of the money is due to Apple. (End Quote) He said she said and we believe most of that is Apple…. “solid numbers” are something else.

  • http://davidbrush.com mrdcbrush

    It is because they have absolutely no idea how to attract and retain customers, provide customer service, or come across as anything other than money-grubbing shysters.

    http://arstechnica.com/gadgets/2012/05/verizon-details-killing-stroke-for-existing-unlimited-data-plans/

  • Mau Sandoval

    Of course I simply don’t know crap about their deals, but I can tell you that they go above and beyond to push for the sales of other smartphones.

    I’ve been with AT&T, T-Mobile and Verizon and I think they are the worst of all three… Maybe it’s just karma…

  • http://tewha.net/ Steven Fisher

    This will probably go down like this:

    Apple will send (likely, has already sent) people to purchase iPhones from Verizon stores and document the experience.

    Verizon will pay.