The New York Times Business section published a story today that business analysts expected higher sales for AT&T with the release of the iPhone.
on Tuesday posted higher-than-expected quarterly profit on strong wireless subscriber growth, but results of the first two days of iPhone sales fell short of forecasts.
The iPhone results sent A&T stock down slightly, but shares of Apple Inc.
, which makes the eagerly anticipated device, fell as much as 5 percent.
Overall, AT&T sales were up but investors were looking for a slam dunk on the iPhone. When that didn't happen like everyone assumed, it pushed the stocks of both Apple and AT&T down with Apple dropping the largest by five percent.
Pacific Crest analyst Andy Hargreaves said he had expected 400,000 iPhone sales for the first two days, but added that sales figures for coming months would be more telling than the first few days.
AT&T reported activating 146,000 iPhone accounts with 40 percent of those reported as new customers.
Soleil Sur Terre Research analyst Todd Rethemeier said the market might have expected too much from the iPhone, which was only on sale for two days in the quarter.
"They likely sold many more phones than they activated," said Cross Research analyst Shannon Cross. "That being said, the Street was probably around 250,000, so it's maybe a bit light."
I'd been wondering when we would get some hard numbers on the phone that Steve made and how it has had an impact with AT&T. While Apple may be laughing all the way to the bank, AT&T is going to have to recognize the Jesus Phone can't be their only salvation.
And it brings into question (at least in my conspiracy laden mind) where American Technology Research got that 250,000 number that streaked across the net just last week? They obviously didn't get them from AT&T.
Don't get me wrong, I think it is great that the iPhone is a success. Apple's success will benefit everyone, whether you get an iPhone or not. It doesn't matter if you stick with the Treo, Blackberry or Windows Mobile device, everyone now sees you can make a phone exciting again. Every business wants customers to get excited about their product and will work harder than ever before. That's great for us.
But as a business model for AT&T? Nah, the numbers show you are going to have to have more up your sleeve. And if Apple's pit bull (Google) snaps up that 700 MHz spectrum, will we suddenly see that Google Phone that was widely rumored and then debunked?
In the Engadget post from way back when linked here, could this have been an early iPhone prototype? And will that phone bust out on the market with Apple guts but a Google name if the FCC's saber rattling turns out to be true?