With the launch of new iPhone 4, Apple and AT&T are experiencing phenomenal demands for the iPhone. But according to the analysts, Telco is unlikely to see true upside until this year later. According to a note released earlier in this week by an analyst Brett Feldman, from Deutsche Bank, the launch of iPhone 4 in the late June has got a very minimum impact on AT&T’s second quarter net ads. He further stated in the note that a full quarter of iPhone 4 sales and other product launches should drive an improved post paid tenders in the coming third quarter. Brett Feldman further stated that for this quarter iPhone 4 could have driven an estimated quantity of 550,000 post paid net ads for AT&T. For the third quarter of year, the analysts have analyzed an estimated forecasting of 900,000 post paid net ads.
AT&T Takes a Dip at Markets
Like Apple, AT&T has tried to struggle to cope with the demand for the iPhone 4. Despite Apple’s worst nightmare apple iPhone 4 is continuously flying off the shelves and according to the recent announcement made by the CEO of Apple, almost more than three millions of the newly launched iPhone 4 have been sold and surprisingly iPhone 4 has comfortably surpassed the initial demands for the popular iPhone 3GS. Contrary to that, the investors have been under whelmed by AT&T. The investors are under whelmed due to the reason that AT&T is currently trading at an amount $24.83. The Texan Telco closed at its 52 weeks low amount of $23.78 and to the investors’ surprise, the company stocks have dipped almost more than 11% in this year.
AT &T and the Investors
Investors are largely being disappointed by AT&T and those who are looking for the major revenue hike after the announcement of AT&T’s results are more likely to be disappointed. The calculations and results of surveys by analysts expect AT&T to post the second quarter revenue of $30.9 billion with an earning of 57 cents per share as compared to the prior quarter’s sale of $30.7 billion and an earning of 54 cents per share.
One of the bright aspects to still invest in AT&T is that throughout the recent years, AT&T’s shares have shown immediate rise after tie announcement of results by Telco. According to the calculations, the company’s stock had returned average of 1.9% on the day of its second quarter results. AT&T can count on to sell Apple’s iPad to boost the revenue it will be able to generate from its second quarter so that the investors are keen to spend in a healthier corporate climate in America.
AT&T has shown encouraging signs for enterprises spending during the first quarter results. Still some of the analysts think that Telco may downplay this trend when the results are announced for the second quarter.
In a note released in the previous days, David Barden who is an analyst at Bank of America stated that recent macro data points and concerns regarding the trajectory of the nascent recovery are likely to increase the possibility of some more muted commentary.