Verizon (NYSE:VZ) Misses on Discount Marketing

Unsurprisingly, Verizon (NYSE:VZ) missed earnings estimates as they went to discounting in relationship to family plans and unlimited plans in an attempt to gain market share and generate new subscriptions.

Net income for the latest quarter reached $2.64 billion, or 93 cents a share, beating $617 million, or 22 cents a share, in the same quarter last year. Revenue dropped to $26.4 billion, a 2.6 percent decline.

Adjusted earnings fell short of the 55 cents analysts had been looking for, coming in at 54 cents a share.

Verizon will be under pressure for the next year on their deal to distribute Apple iPhones (NASDAQ:AAPL), with a hit range of $3 billion to $5 billion in the first year it sells the device. That's because they're subsidizing the iPhone at about $400 each.

With a mandatory 2-year service plan, the second year is where they'll start to make their money back.