Verizon Shared Data Plans – Analysis: Costs down, customers pay more

Verizon (VZ) posted a pretty impressive holiday quarter (one-time charges aside) with a good outlook on Tuesday, and the company’s share price rose as a result. There were also plenty of interesting takeaways from the carrier’s earnings call, but The New York Times’ Brian X. Chen zeroed in on one item of particular interest. Verizon launched new “Share Everything” plans last summer that make smartphone data more expensive for many users. The best thing about these plans for investors — and, not coincidentally, the worst thing about the plans for subscribers — is that Verizon is now making more money off of smartphone data as costs associated with transmitted that data are falling. As Chen noted, Verizon’s average monthly revenue per wireless account grew 6.6% to $146.80 in the holiday quarter.

The main reason for the growth is simple: 23% of Verizon’s wireless accounts are now subscribed to Share Everything plans. The beauty of Verizon’s new plans, as the report points out, is that data is getting cheaper for Verizon to transmit even though the carrier is charging more for it. “The company says the 4G LTE network is five times more efficient than its predecessor, 3G,” Chen wrote. ”That means the more people who buy devices that connect to the newer network, like the iPhone 5, the more money the company will eventually gain.” As an added bonus, Chen noted that Verizon’s faster data networks also cause users to eat through their data allowances more quickly. This eventually prompts them to buy more expensive plans with higher data caps, which of course net Verizon even more cash.

from BGR

Google Announces They Made $14.4 Billion In Revenue, $2.89 Billion Profit In Q4 2012

googlebuilding

Google just announced its earnings for Q4 2012, and guess what? They made a ton of money. We’re shocked.

Actually, Q4 2012 was really great for Google. The company earned $14.4 billion in revenue, which is 36% better than what they did last year. While we tend to think of Google as an American company, only $5.99 billion of that revenue came from the U.S. while the rest was made in international markets.

 

With $1.51 billion in revenues, Motorola Mobility accounted for 11 percent of Google’s total revenue for the quarter. Even though Google made a lot of money, they only netted $2.89 billion in net income, which is still a lot, but only slightly better than the $2.71 billion they pulled in during Q4 of 2011.

Google_revenues

To put Google’s profit in comparison, Apple netted $13.06 billion in profit for Q4 last year and is expected to shatter that mark during their financial report tomorrow. Cult of Mac will be listening to Apple’s financial earnings call tomorrow to provide a full breakdown on the latest results.

Source: Google

via Cult of Mac

Proudly powered by WordPress | Theme: Baskerville 2 by Anders Noren.

Up ↑