US mobile phone company Verizon Wireless reports that it has added a large number of new wireless customers in the first quarter of 2011, but investors are unimpressed.
Building on the demand for the iPhone 4 and a new LTE enabled smartphone, the company revealed that it had brought in 906,000 new postpaid wireless subscribers in the first quarter of 2011, almost the double from the same period last year.
All in all, the company said that it had added 1.8 million new wireless subscribers in the first quarter, bringing the total number of wireless connections to 104 million, of which 88.4 million were retail customers.
The company posted earnings of 51 cents per share and a revenue of $26.99 billion, a slight increase from last year.
However, the company’s ‘solid’ financial performance failed to impress investors who sent its shares spiralling down by 2.3 percent. Some investors believe that the company has posted disappointingly low profit margins while others were not satisfied with the company's revenue growth.
Verizon Wireless plans to add three more Long Term Evolution 4G smartphones in the second quarter and will also start selling a new version of Apple’s iPhone smartphone later this year. The company's weak first quarter results run counter to high profits reported by most tech firms.