“When discussing a company’s financial results, context is extremely important. Yet when it come to Apple, and the iPhone in particular, analysts on Wall Street consistently seem unable to properly put sales data into perspective,” Yoni Heisler writes for Network World.
“Earlier this morning, AT&T released their earnings for the first quarter of 2012 and announced 4.6 million iPhone activations,” Heisler writes. “That’s about a 20% increase from the same quarter a year-ago yet Wall St is giving Apple’s share price a beating as it represents a precipitous drop from the 7.6 million iPhones it activated during the December quarter of 2011.”
MacDailyNews Take: How does Heisler know that’s the reason AAPL is taking a beating? In fact, AAPL was taking quite the beating before the AT&T earnings release, which strongly suggest the reason(s) for the AAPL beat-down lie elsewhere.
Heisler writes, “in the midst of Apple shares taking a plunge, investors seem to be overlooking an otherwise impressive fact, namely that iPhone activations on Verizon and AT&T during Q1 2012 represented more than half of all smartphone activations on each carrier respectively.”
Read more in the full article here.
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78% of all smartphones sold by AT&T last quarter were Apple iPhones – April 24, 2012