Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Weak iPhone Sales Shock Apple Shares

AT&T profits up, but stock takes hit after hot gadget cools

By Heather McPherson,  Newser User

Posted Jul 24, 2007 4:18 PM CDT
Email

(Newser) – Sales of the iPhone, the joint Apple-AT&T venture that jolted the tech world in June, have cooled—only 200,000 units moved this month, compared to an estimated 700,000 during the premiere weekend alone. Apple shares were down more than 6% today on the news. Meanwhile, AT&T profits jumped 61% in the second quarter: Bloomberg reports that the telecom giant's net income rose to $2.9B from $1.8B.

AT&T attributed its 13% rise in sales mainly to an exclusive deal with Apple to service the  iPhone, and described iPhone sales as "robust". But the nation's largest phone company, which was off nearly 1% today, was also boosted by its $86 billion takeover of BellSouth, which gave it complete ownership of Cingular, the cellular provider that has adopted the AT&T name.

Early iPhone adopters wait outside AT&T for activation. Wireless sales rose 13 percent as AT&T activated 146,000 iPhones in the first two days of their release.
Early iPhone adopters wait outside AT&T for activation. Wireless sales rose 13 percent as AT&T activated 146,000 iPhones in the first two days of their release.   ((c) JenniferWoodardMaderazo)
A former Southwestern Bell payphone now adorned with the AT&T logo as recent mergers nearly double the company's revenue.
A former Southwestern Bell payphone now adorned with the AT&T logo as recent mergers nearly double the company's revenue.   (Wikimedia Commons)
T To Acquire BellSouth For $67 Billion
T To Acquire BellSouth For $67 Billion   (Getty Images)
T Inc. wiped some of the glow off Apple Inc.'s iPhone on Tuesday, July 24, 2007, releasing numbers that showed fewer people than expected signed up for service in the first two days of the multimedia cell phone's release. (AP Photo/Jason DeCrow, file)
T Inc. wiped some of the glow off Apple Inc.'s iPhone on Tuesday, July 24, 2007, releasing numbers that showed fewer people than expected signed up for service in the first two days of the multimedia...   (Associated Press)
AT&T Corporate Center, Chicago.
AT&T Corporate Center, Chicago.   (Krzysztof Makara)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

AT&T second-quarter highlights
ZDNet

AT&T stock profile
Associated Press

 
iPhone • Apple • Cingular • AT and T • gadget

More Newser Stories

New iPhone Hack Lets You Switch Carriers

iPhone Calling! But Not for You, or You ...

iPhone Madness Has AT&T on High Alert

19M Ready to Pick Up iPhone

Wait Is Over: White iPhone 4 Out Within Weeks
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne