Verizon shares moved lower after the company made comments margins will fall because of the iPhone.



NEW YORK (TheStreet) - Shares of Verizon(:VZ) moved lower after the company said iPhone sales hurt fourth quarter margins.

CNBC reported that the New York-based telecom giant said it sold 4.2 million iPhones during the fourth quarter. As a result, gross margins would be hit 500 to 600 basis points. The comments were made by Verizon's Chief Financial Officer Francis J. Shammo at a Citi conference. Verizon moved lower on Wednesday.

Verizon added the Apple(:AAPL) iPhone during the second quarter of 2011, becoming the second major carrier in the United States to do so, behind AT&T(:T). Sprint(:S) has also started carrying the iPhone.

Verizon shares ended Wednesday's trading down 52 cents, or 1.31%, at $39.21.

--Written by Chris Ciaccia in New York

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