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Apple slumped $8.81, or 6.1 percent, to $134.89, its biggest drop since January. Activations of the company's new iPhone by AT&T Inc. in the first two days of shipment are a ``disappointment relative to Street thinking,'' said Piper Jaffray analyst Gene Munster.
Demand for the iPhone has had a ``significant decline'' in the past 10 days, according to CIBC World Markets. ``Among the stores we visited, most visitors were not looking at the device, and only a very small subset bought it,'' wrote CIBC analyst Ittai Kidron.
Evidently sales were closer to 125,000 units instead of the 500,000 unit original predicted/reported by Mac enthusiast sites. AT&T's stock was also hammered.
The 1/2 dozen or so people I know that have bought the iPhone seem to be thrilled with it. My son has one and I think its pretty cool. to each his own I guess, I'm no expert but I use laptop all day for my sales position that is Windows based and I also have 2 macbooks that we use at home along with all 4 of us have iPods and I never have any issues with these products while I have many issues daily with Windows. Just my opinion. Apple products work as advertised (very similar to my Cayman in that respect).
Man, you really have some pent up hostility against Apple and the iPhone.
Hey I'm just reporting the news, although I did find it amusing that an Apple product was hit with the same sort of thing Windows products are hit with showing that Apple is not infallible (as some here have suggested) afterall.
I mean it isnt like I posted that the Xbox Elite systems are selling better than expected and continue to be sold out, that would be sort of rah-rah'ing for Microsoft.
And BTW don't mistake my post for hostility towards the iphone, actually I have great sadness towards the iphone that it could have been so much more but certain people got in the way and mucked it all up...
AT&T stock is currently $40.50, almost at a 5 year high. Almost 150,000 Apple iPhones were activated in their first day-and-a-half on sale, AT&T said on Tuesday.
AT&T Posts Increase in 2Q Profit — AT&T on Tuesday posted a 61 percent increase in quarterly profit, aided by subscriber growth in its wireless businesses. "Wireless is the largest revenue stream we have," CFO Rick Lindner said. "It's the fastest-growing part of the business. It's growing not only our top line but net income and margins." AT&T's second-quarter profit increased to $2.9 billion, or 47 cents a share, up from $1.8 billion, or 46 cents a share, a year prior. Revenue rose to $29.5 billion from $15.8 billion. AT&T also added 200,000 TV customers during the quarter. More than 51,000 of those subscribed to U-verse, the Internet-based video service it's delivering via its phone lines, and the rest came through its resale of satellite service.
From Randall Stephenson, new AT&T CEO.
We announced second-quarter results today, and I'm pleased to tell you that we had another strong quarter, thanks to your efforts. Revenues were up, driven primarily by growth in wireless and IP-based services. We're achieving our merger synergies and finding ways to operate more efficiently. As a result, this was our ninth consecutive quarter of double-digit growth in adjusted earnings per share.
Here are some highlights of the quarter:
We continued our leadership position in wireless. We had a net addition of 1.5 million wireless customers with 63.7 million now in service, up almost 10 percent over the past year. We're continuing to reduce churn. And wireless data revenues are up nearly 67 percent over last year.
No discussion of our wireless results would be complete without mentioning iPhone. Although it went on sale just 30 hours before the quarter ended, we had 146,000 activations in that period, with about 40 percent of them from new AT&T customers. Sales this month are continuing strong, with good traffic in our stores.
We saw substantial improvement in enterprise revenue trends, thanks to strong growth in IP data revenues and solid demand for data transport services. Total enterprise revenues were up 1.9 percent from the first quarter. We are making good progress in this market and continue aiming for positive revenue growth in 2008.
Revenues in the small/medium business market showed solid growth, with continued improvement in data and voice services and access line growth.
We added 200,000 video customers in the second quarter — 38,000 from U-verse and 162,000 from satellite TV. U-verse is now available in parts of 23 markets and we ended the quarter with 51,000 customers in service. Including our bundled satellite television service, we now provide TV service to nearly 2 million people.
We added 400,000 high speed Internet customers and now have 13.3 million consumer and business broadband subscribers, up 20 percent over the past year.
We're ahead of target for achieving merger synergies. Cost savings from the BellSouth and AT&T merger integration totaled $1.9 billion in the first half of 2007. Synergies are expected to reach more than $3 billion for the full year.
disclaimer you guys are being weird,apple is so gay for those "apple is cool,pc is lame" ads with the two ugly guys...the whole ad is so pathetic and in trying to bash PC,apple seem weak and really sad,like hugh hefner dancing and making out with his gfs (live in pros) who love him for himself of course
neways in becoming mainstream,apple is now totally lame and gay and for all the things apple lovers bashed PC users,they are now comming back onto them
K-Man,
i really hate to disagree or argue with you because of all the wonderful things you do for this site, but come on. No on says Apple is perfect. NO software is invulnerable to attack given enough time and effort. But compard to MSFT? Well, there is NO comparison! I have been a windows fanboy for most of my adult life. Bought my first Mac about 6 yrs ago and went completely Mac about 1 1/2 yrs ago. It is soooooo much better. Infinitely less headache and frustration. And the damn things dont crash! Everything just works the way it is supposed to.
Gee, I wonder why Dell and HP started selling XP again? Cuz Vista sucks that bad! It was a step backwards in usability and reliability.
As far as reporting the news on the iPhone, well it was only available during the last 30 hours of Apples 3rd quarter. They sold 270,000! That is 2 per second! As far as the units not continuing to sell? Well, i dont know what stores those yahoo's went into. But i could barely get through the door of my apple store last week cuz there were so many people inside. And not buying the iphone? Not only did i see adults buying for themselves but also saw several parents buying for their kids. I think i will continue to hold my aapl shares.
The iPhone "mucked up"? I am a gadget freak and am not easily impressed. The iPhone is a work of art! Could it be better ? Absolutely. Will it be better? No doubt in my mind. even in its current incarnation, it is the best smartphone i have ever had. If you are intersted, i have a couple of POS Treo 700's i need to unload. Warning though, they crash and need to be reset daily.