Bidness Etc - How Tablets Usage Has Helped Verizon Communications Inc (NYSE:VZ) Sales

Verizon Communications Inc (NYSE:VZ) announced its 4^th quarter earnings last week, which failed to meet financial analysts expectations. Even though the 4Q earnings were higher than expected, the earnings per share reduced to $0.71. The company however believes that one of the reasons for increase in its revenue is the increasing sales of its tablets the previous year.

According to CFO Fran Shammo, what Verizon plans to do next is vital for the company’s growth. Tablets proved to be a revenue wheel for the the company due to increase in tablet usage and consumers. Tablet users have made their way to the top in giving a successful business to VZ, and the company plans to use it as an advantage.

In the last quarter, Verizon added around 1.5 million customers that use 4G to an existing number of 57 million registered customers. With the increasing number of 4G users, the company is still striving to transfer all 3G customers to 4G network.

This goal of the company is the most anticipated one, even though it will be seen as a slow and gradual change. Right now, 66% of Verizon’s connections are on 4G, hence the target to grow and to have all the connections on it is yet to be achieved, which is what the company is currently striving for.

Shammo also said in conversation with financial analysts that tablets have proved to be very profitable for the company. The total number of tablet subscribers was observed to be 8 million by the end of the FY144Q. Tablet users use internet to watch videos on stream and communicate through the web more often the than the smart phone users do, which has proved them to be highly profitable for the company.

In the last quarter only, the company succeeded in accumulating 1.4 million 4G tablet subscribers. Tablet users are seen to be using more internet than those who use smartphones actively. This in return helps the company to provide more and get more in reversion.

As compared to the previous quarter, 50% more data plans are being consumed by the tablet users today. The company also has most post-paid users in United States, for over 100 million, than any other company, hence penetrating the market quite impressively with 80% share. The wireless service provider, does have a chance to gain strong growth with data plans that are to be introduced for its tablet users, just the way it has done for its network consumers.