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Posted
Jun 26 2008, 01:24 PM
by
Kim Peterson
AT&T is biting a $1.2 billion bullet in its decision to sell the upcoming 3G iPhones for $200 and $300. The telecom giant is buying the phones from Apple and selling them at a loss, which the company said will dilute earnings by 10-12 cents a share this year and next. AT&T's decision is rippling across the industry, RCR Wireless reports. Sprint is selling its iPhone competitor, the Instinct, for $130. The phone had been expected to price around $200. Analysts say we may see a $199 ceiling for devices from now on in a smartphone price war, thanks to AT&T and Apple. (Sprint said today the Instinct broke company sales records in its first week).
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Posted
Jun 12 2008, 09:41 AM
by
Kim Peterson
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Oh, sure, Apple's new 3G iPhone sounds great at $199, but AT&T is going to pile on a two-year contract, a voice plan that starts at $39 a month and a data plan that adds $30 on top of that. And if you want text messaging, it'll cost you another $5 a month. It all adds up to $1,975 over two years, and Gizmodo takes a look at how that compares with other phones.
Turns out the price isn't that bad. The original iPhone costs $160 less, at $1,815 over two years. But three other 3G phones cost more. AT&T's HTC Tilt costs $2,075, Sprint's HTC Mogul costs $1,955 and the XV6800 by Verizon comes in at $2,175.
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Posted
Jun 10 2008, 09:53 AM
by
Kim Peterson
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We've had time to sleep on Apple's iPhone announcements, and today people are coming out of their Steve Jobs-induced euphoria and looking a little closer at the news. Apple shares steadily crept up today but have recently begun falling to $185.03 at last check. I'll round up the latest iPhone discussions and answer some of your questions below.
Barron's has a collection of analyst reaction to the 3G iPhone. Most of them say that buying AAPL is still a good idea. Analysts were mainly concerned about Apple dropping its revenue-sharing model with carriers, which could bring lower profits. Bernstein Research estimates Apple will sell the iPhone to carriers for between $350 to $700 each. PiperJaffray expects 12.9 million iPhone unit sales in 2008 and 45 million in 2009.
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Posted
Jun 09 2008, 01:02 PM
by
Kim Peterson
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Why were Apple shares down Monday, with all the big iPhone news? Chalk it up to the typical storm of hype that surrounds Apple announcement. Expectations ratchet up so high that CEO Steve Jobs would have to juggle 10 iPhones on one foot to impress investors.
Apple stock was weak all day, but recovered in the final hour of trading. It closed down 2.2% on heavy volume to $181.61. Here's how Apple's news affected other stocks:
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Posted
May 23 2008, 10:09 AM
by
Kim Peterson
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We're officially in bizarro world when people start lining up at Apple stores for absolutely no reason. Yet that happened yesterday in New York (Engadget has the details.) Perhaps it's a sign of the inevitable hysteria that surrounds Apple's annual developers conference, slated for June 9. The biggest question is whether the company will announce a faster iPhone, and analysts are weighing in with predictions. Top Apple analyst Gene Munster of PiperJaffray told investors today to cool their heels. Yes, Apple will show a new iPhone with 3G capabilities, which allow for faster Web access, but it will look almost exactly like the current model, he wrote. Don't expect revamped iPhones until 2009. Apple shares are up slightly today to $178.62.
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Posted
Apr 03 2008, 11:45 AM
by
Douglas McIntyre
Filed under: Apple, Comcast, Ford, DirecTV, Verizon, Sirius, XM Satellite Radio, AT&T, Time Warner Cable, Toyota, GM, Clear Channel, Dish Network
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When the Justice Department cleared the merger of Sirius with XM Satellite there was anticipation that once the deal got done the shares of both companies would go up. A year ago, the combination was viewed as a dream deal.
If anything, the shares have dropped. Sirius is below $3 and XM is below $13. The market began to realize that the year wasted on getting government approval was a year the companies need to stay competitive. XM has over $1 billion in debt. Refinancing it in the current market would be nearly impossible. Selling shares would lead to extremely large dilution. As we recently noted, Goldman Sachs even put Sirius on its "Conviction Sell List" with a price target of $2.25.
Growth at Sirius has slowed considerably. In the fourth quarter revenue rose only 29% to $250 million. But, for the full year, revenue was up 45%. Subscriber deactivations in the fourth quarter were almost 540,000 compared to 330,000 in the same quarter of 2006. The firm's net loss was $166 million. Long-term debt was almost $1.3 billion.
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