Verizon (NYSE: VZ) has the largest market share of wireless customers, at 38% of the US market. T-Mobile (NASDAQ: TMUS) and AT&T (NYSE T) have about 30%. In theory, Verizon should benefit more from the launch of the iPhone 16. A rise in revenue can be added to its position as one of the highest-yielding blue-chip companies. Verizon’s current yield is 6.4%.
Verioon’s stock has risen at about the same rate as the S&P 500, with an occasional small bounce due to earnings. In the last year, Verizon shares have been up 19%, while the S&P 500 has been 26% higher.
Verizon makes most of its revenue from subscribers and not equipment. In the most recent quarter, when revenue was flat at just over $32.5 billion, equipment sales were $5 billion. The bad news is that wireless equipment costs $5.5 billion. Verizon is losing money on smartphones and accessories to drive subscriber revenue.
Viewed through the lens of iPhone revenue, the Apple smartphone will not help Vierzon become more profitable. The wireless customers that the iPhone will help Vierzon keep or gain are the key to the financials.
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The post Does iPhone Launch Help Verizon’s High Yield Shares? appeared first on 24/7 Wall St..