Quality of smartphone and tablet lineup important for Verizon
In the previous part of the series, we discussed Verizon’s (VZ) smartphone business and how the Edge program helped the company increase its equipment revenues at a fast rate. However, the quality and variety of the smartphone lineup is an important parameter for any telecom company. For Verizon, it’s even more important, as it’s trying to increase the popularity of its Edge program by attracting customers to upgrade their devices faster. However, users won’t be convinced to upgrade their smartphones under the Edge program if they don’t find attractive upgrade options.
Verizon launched a number of popular smartphones in the last quarter
According to a report from ComScore and as the chart above shows, Apple (AAPL) and Samsung (SSNLF) lead the U.S. smartphone market. Verizon is currently selling a number of smartphones with two-year contracts or under its Edge program. For example, you can buy the HTC (HTCKF) One (M8) for Microsoft’s (MSFT) Windows for $100 under a two-year contract or $30 per month under the Edge program. Similarly, you have the option to buy Apple’s iPhone 5S or 4S under any of the plans.
In the second quarter, Verizon launched a number of popular smartphones such as Samsung’s Galaxy S5, Samsung’s ATIV SE, LG’s (LGEAF) Lucid 3, and HTC’s One (M8). The company also launched important tablets such as Samsung’s Galaxy Tab 4 8.0 and Galaxy Tab S. Plus, it launched Sony’s (SNE) Xperia Z2 tablet and LG’s G3 smartphone earlier this month. So Verizon isn’t compromising on the quality and variety of new smartphones to maintain its customers’ interest.