AT&T iPhone numbers cause AAPL shares to drop

Section: Apple, Apple News, iPhone + Communications, Carriers, iPhone

Apple shares fell about 4% after AT&T’s first quarter earnings report despite rising for the two days beforehand.  Investors were expecting huge iPhone sales for AT&T to help Apple reach it’s 10 million iPhone’s sold goal.  However, AT&T announced that it has only received 1.3 million new net subscribers across all of its devices which means not as many iPhones were sold as expected.  Still, TechCrunch points out that many iPhone’s have been sold internationally and then unlocked (around 30%), meaning that Apple could have sold more phones that AT&T’s numbers show.  From the call:

iPhone continues to be very popular with customers, feedback is very good. ARPUs are in the mid to upper 90s across the base. We continue to see customers adopting iPhone. Over 40% are new to us. Nothing really new in trends there. Continued, solid growth

All of these numbers and reports are, obviously, before the announcement of a 3G iPhone.  This device is expected to increase sales by a huge amount due to the high anticipation and demand.  However, even before this announcement, AT&T has reported a 22% profit increase, so the iPhone must be doing something right for them.  What do you think of all this?  How close is Apple to 10 million devices?

Full Story » | Written by Josh Holat for Appletell. | Comment on this Article »