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In a negative for Qualcomm (QCOM), Verizon (VZ) CFO Fran Shammo says his company is looking to...

In a negative for Qualcomm (QCOM), Verizon (VZ) CFO Fran Shammo says his company is looking to sell 4G-only phones by late 2014. The 3.25% royalty rate Qualcomm receives for 4G-only devices is lower than the 4%-5% rates it often gets for 3G-capable devices. Shammo also notes the free (with contract) iPhone 4 (AAPL) accounted for many of its Q4 activations, and hopes competition will lower subsidies - the latest iPhones often get a ~$450 subsidy. Competition between Android OEMs could give Verizon more leverage with Samsung than Apple. (Verizon/Vodafone)
Comments (4)
  • Peter Karahalios
    , contributor
    Comments (14) | Send Message
     
    I wonder how much of this is already priced into the stock. Late 2014 is a while away.
    5 Mar 2013, 06:55 PM Reply Like
  • rrosey2
    , contributor
    Comments (685) | Send Message
     
    Sounds like a bargaining tool.
    6 Mar 2013, 12:54 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    It also means no low priced phone from AAPL at Verizon, as the
    i-phone 4 is 3G and not 4G-LTE capable.
    6 Mar 2013, 04:11 AM Reply Like
  • Andrew Hall
    , contributor
    Comments (11) | Send Message
     
    The 3G network will still be running for quite a while. By the end of 2014 I'm sure the iPhone 4 will be more-or-less obsolete anyway.
    6 Mar 2013, 06:50 AM Reply Like
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