Verizon Wireless recorded second quarter profit of $1.61 Billion, $0.57 per share. Revenue rose 2.8% to $27.54 Billion, slightly above expectations. EPS was $.02 higher than expectations. Verizon added 1.3 million new wireless subscribers, 36% of which were smartphones. The target rate is 50% which analysts believe is unachievable. Verizon gained 2.3 million iPhone users last quarter compared to AT&T which added 3.6 Million customers. This is in part due to AT&T lowering the cost of its 3GS models.
Verizon also announced that they have appointed a new CEO, Lowell McAdam. McAdam is the former chief of Verizon Wireless, a business line which has become the biggest U.S. mobile phone carrier and the most profitable business unit for Verzion. McAdam hopes to bring an Entrepreneurial focus by expanding the Verizon FiOS fiber-optic TV and internet service division. Moving forward, AT&T and Verizon will be the titans in the industry. I expect Verizon's FiOS to take off and have a high penetration rate in households. Shares are down over 2% for the day.