Verizon to Sweeten Android Experience with Xperia Z3v
Verizon Wireless of Verizon Communications Inc. (VZ) has announced the launch of Sony's Xperia Z3v. Consumers can avail the new phone under Verizon’s network starting Oct 23, 2014.
Customers can order the new Xperia phone online on Verizon’s website or buy it physically from Verizon stores located across the U.S. We believe the new launch is in sync with the carrier’s consistent trend of adding new models to its wide range of smartphones, thus offering more options.
In addition, it will further help attract users who look for high-end smartphones when opting for Google Inc.’s (GOOG) Android-powered phones, as opposed to Apple Inc.’s (AAPL) iPhones.
Verizon is riding high on increased smartphone sales and the introduction of the best-in-class devices is likely to boost data revenues going forward. During the second quarter of 2014, the company’s smartphone penetration increased to 75% driven by several device launches intended to lure customers to 4G LTE, which accounts for around 76% of the total data traffic.
The company ended the quarter with 63.5 million smartphone activations, of which 69% were 4G. With approximately 20 million 3G smartphones and over 22 million basic phones, the company expects a further expansion in its 4G smartphone base in 2014. In addition, Verizon is focusing on enhancing its postpaid tablet base in 2014, which currently stands over 4 million.
Further, Verizon reportedly activated Voice over LTE (VoLTE) service on the latest iPhone 6 and iPhone 6 Plus, bringing its first series of VoLTE handsets into the market. This new line of handsets is expected to gradually reduce Verizon's reliance on CDMA chipsets, leading to lower device cost. Additionally, voice traffic on LTE will help the company in replacing its 3G spectrum to accommodate LTE, increase bandwidth and gain competitive advantage over peers like AT&T, Inc. (T).
Verizon presently holds a Zacks Rank #2 (Buy).
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