Apple stock hit by AT&T numbers

April 24, 2012

(AP) -- Apple shares slipped in early trading Tuesday after AT&T Inc., the largest seller of iPhones in the U.S., reported a sharp drop in first-quarter sales compared to the holiday quarter.

Apple is set to report another record quarterly profit for the January to March period after the market close Tuesday.

In its first-quarter report Tuesday morning, AT&T said it activated 4.3 million iPhones in the first quarter, down from 7.6 million in the fourth quarter, which saw the launch of the iPhone 4S. However, the number was still up from the 3.6 million iPhones AT&T sold in the same quarter a year ago.

Analyst Brian White at Topeka Capital Markets said the drop in AT&T's figures wasn't very significant, considering the wide international distribution of the iPhone 4S. He still believes will report selling 29.6 million iPhones in the January to March period, its fiscal second quarter.

White is an Apple bull, with the highest price target for the company among Wall Street analysts: $1,001.

Wall Street analysts expect Apple Inc. to post a profit of $9.2 billion. That's roughly in line with the profit expected from the world's largest oil company, Exxon Mobil Corp.

The majority of the profit will come from iPhone sales, especially now that three of the four national U.S. wireless carriers -AT&T, Sprint, and Verizon- sell the phone.

Shares of Apple Inc. fell $5.76, about 1 percent, to $565.94. Shares had been up in premarket trading before the AT&T report.

Explore further: Apple shares rocket after net income jumps 90 pct

0 shares

Related Stories

Motorola posts profit, strong sales; stock jumps

April 29, 2010

(AP) -- Motorola Inc. posted an unexpected profit in the first quarter, as sales of its new phones outdid its own forecasts. It also gave an outlook that was brighter than Wall Street was predicting, and its shares jumped ...

Apple doubles iPhone sales in 1Q (Update)

January 24, 2012

The iPhone is taking over Apple. For the first time, the device that changed how people use mobile phones, accounts for more than half of the behemoth company's sales.

Apple shares soar, edges ExxonMobil in market cap

January 25, 2012

Apple shares soared on Wednesday following blockbuster quarterly earnings and the California gadget-maker leapfrogged over ExxonMobil to become the largest US company in terms of market value.

Recommended for you

How to curb emissions? Put a price on carbon

September 3, 2015

Literally putting a price on carbon pollution and other greenhouse gasses is the best approach for nurturing the rapid growth of renewable energy and reducing emissions.

Customizing 3-D printing

September 3, 2015

The technology behind 3-D printing is growing more and more common, but the ability to create designs for it is not. Any but the simplest designs require expertise with computer-aided design (CAD) applications, and even for ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.