Does iPhone Launch Help Verizon’s High Yield Shares?

This post includes affiliate links. If you purchase anything through these affiliated links, 247wallst.com may earn a commission.

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.

“The Next NVIDIA” Could Change Your Life

If you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.

The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”

Click here to download your FREE copy.