Verizon is likely to owe Apple $14 Billion

A recent marketing research discovered that Verizon may end up owing Apple 14 billion dollars for selling less iPhones than it committed to do in 2013.

According to Craig Moffett, a telecommunications analyst, in 2010 Verizon signed an agreement with Apple to sell iPhones worth 23.5 billion dollars during 2013 alone.  However, the figures of 2012 show that Verizon failed to fulfill the commitment by two times. This will undoubtedly influence the dividends, as the 12-1 billion means 4-5 dollars of each share.

The reason for such poor carriers’ performance is sluggish demand for iPhone. It is not only Verizon that suffers the consequences of signing a commitment to sell certain amount of iPhones. Other carriers also have problems with reaching the approved figures. Apple is expected to have a 22% decline in net income over the third quarter.

Apple is unlikely to draw attention to such a case, as nearly all carriers working with it are facing the same problems. However, California-based company should learn from this experience to prevent such unpleasant situations in the future.

Neither Apple nor Verizon agreed to comment the issue.