Skip to main content

Verizon CFO Criticises Apple Over iPhone 5 Strategy

Fran Shammo, the chief financial officer at Verizon Wireless, voiced her concern over the introduction by Apple of a new iPhone 5 model over the next few months.

Speaking at a tech investor conference organised by investment bank Morgan Stanley, Shammo said (via PCWorld) that Verizon expects customers to voice their angst over the fact that the current Verizon iPhone 4 will be made obsolete within the next few months.

This means that the new model will not be as financially viable for the carrier as margins would be significantly less but then Ed Oswald, of Technologizer, reckons that Verizon has had much better (financial and strategic) reasons just to go ahead with the launch.

Verizon has apparently sold well over one million iPhone 4 until now, which translates into contracts worth in excess of $1 billion over two years or more.

The outburst from Shammo came as Verizon announced last week that it will be phasing out unlimited data plans for its iPhone users as it reverts back to a more lucrative and traditional tiered service.

The iPhone 5 is expected to be launched towards the beginning of June 2011, possibly on the first day of the Apple Worldwide Developers Conference and will include a number of features gained from the iPad 2.

Desire worked at ITProPortal right at the beginning and was instrumental in turning it into the leading publication we all know and love today. He then moved on to be the Editor of TechRadarPro - a position he still holds - and has recently been reunited with ITProPortal since Future Publishing's acquisition of Net Communities.