Business & Finance
News
7/25/2007
12:51 PM
50%
50%

AT&T iPhone Sales Disappoint Apple Investors

Apple is scheduled to release iPhone sales on Wednesday as part of its quarterly earnings report.

Apple stock recovered a bit Wednesday after dropping more than 6% on disappointing sales of iPhones by AT&T.

The exclusive U.S. wireless carrier of the device reported Tuesday in its second-quarter earnings that it had activated 146,000 iPhones in the first two days it was on sale. AT&T recognizes sales of mobile phones at the time of activation.

While the sales number would have been outstanding for any other mobile phone, Apple investors had expected more from the overly hyped device. Apple stock on Tuesday fell $8.81, or 6.1%, to $134.89 on the Nasdaq. By midday Wednesday, the stock was up roughly 1%, or $1.35.

Investors apparently expected more from the iPhone based on reports during the first weekend it was on sale. Apple launched the combination mobile phone/media player/handheld computer on Friday June 29. Goldman Sachs had estimated sales of 700,000 units that weekend, and some Web sites posted rumors of 1 million phones sold.

While some predictions were over-the-top, AT&T Chairman and Chief Executive Randall Stephenson said sales of the iPhone were strong in July. "Our launch with Apple of the breakthrough iPhone has quickly redefined customer expectations for their wireless experience," he said in a statement. "Mobility is a major growth engine for AT&T."

Apple is scheduled to release iPhone sales on Wednesday as part of its quarterly earnings report. The number is expected to differ from AT&T's, because Apple recognizes revenue when the product is shipped. Apple has set a goal of selling 10 million iPhones during the first 12 months.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of January 18, 2015.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.