Verizon Might Owe $14B To Apple Because Of Slow iPhone Sales

Some analysts have been saying recently that iPhone sales have been slowing down, the imminent release of a next generation model is considered to be one of the reasons. If there is indeed a decline in sales, it could mean that Verizon might end up owing Apple some $14 billion. According to Moffett Research, an investment research firm that analyzed SEC filings, Verizon signed a deal with Apple to sell $45 billion worth of iPhones. To meet this number, the carrier currently needs to sell almost $23.5 billion worth of iPhones.

The $45 billion purchase commitments were reportedly made in the end of 2010, the agreement had a three year sales period. Apple is said to be one of the few manufacturers out there that require purchase commitments. Moffett Research believes that Apple isn’t likely to let Verizon off the hook easily if it misses these commitments. The company reportedly has similar agreements with other carriers around the world, bending rules for Verizon would set a precedent that wouldn’t be favorable for Apple. In the last quarter of 2012 and first quarter of 2013, Verizon sold over 10 million iPhones, majority of them being the iPhone 5. So if Verizon wants to meet its commitment, it would have to literally double its 2012 iPhone sales to reach the $23.5 billion figure. Perhaps the next generation iPhone might help the carrier’s cause.

This article was filed in Homepage > Apple and was tagged with iPhone and Verizon. The story was spotted on latimes
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