Sprint earnings drop 95 percent, but beat street expectations
Added on 2007-08-08 13:49:00
by Randall Bennett
 Earnings season is a funny thing... it kind of like the "grown up" version of junior-high dating; everyone's talking, but no one really knows how it works until someone gets pregnant. Sprint announced their beautiful bundle of joy, a one cent per share increase. While it may seem meager, the report beats the street's expectations, but the bad part? It's a 95% decrease year over year. Different news outlets spin it the way they want, but here's the real facts. Sprint earned about 25 cents per share before one time expenditures cut out that bottom line. Sprint is gearing up for the 4G cellphone network race (insert WiMax wars joke here) so they say the spent heavily in upgrading their networks. Sprint also saw some uptick in subscriber base, but the company says it's unlikely to last past this quarter.
We're confident that Sprint beating analyst expectations is a good thing, but by the same token, they're really going to have to turn around their customer unfriendly tactics to win over more customers. Nothing says customer satisfaction and loyalty like dropping your problem children.
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iPhone sales - activations = stupid speculation
Added on 2007-07-26 09:19:00
by Alfredo Padilla
 So after the roller coaster ride that Apple stockholders have enjoyed the last couple of days lets look a little closer at the numbers. AT&T reported on Tuesday that they activated 146,000 iPhones. This sent Apple stock plummeting as it fell short of the somewhat ridiculous expectations of analysts that ran as high as 500,000 phones sold. Apple came out the next day and announced that they had sold 270,000 iPhones in the first 30 hours, a figure almost 85% higher than AT&T's activations number. The speculation on why the discrepancy existed has gone far afield, as some argue that a combination of activation problems and people seeking to sell the phone on Ebay might be the issues. Although we're sure that both of these items contributed, the truth is that there is no way that there were 124,000 activation problems + disappointed ebay sellers. People seem to be missing the obvious reason for the discrepancy, online sales. Phones sold through Apple's online store during the period would obviously not be activated by AT&T as buyers would not receive them for at least a week, if not longer. Although we understand that its fun to whine about activation problems and speculate about how broken hearted Ebay sellers were, lets have some common sense here.
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Verizon prepping to buy back some of VzW from Vodaphone?
Added on 2007-06-25 08:21:00
by Randall Bennett
 Some are speculating that Verizon is sick of sharing its wireless bed with Vodaphone and is looking to buy out more of Vodaphone's stake in VzW. The speculation is fueled by Verizon's June 14th SEC filing in which they asked for another $8 billion in debt, which raised many an analyst eyebrow. No one is saying Verizon will purchase the entire 45% stake Vodaphone owns in the carrier, but speculation continues that they'll buy some part of the stake.
Verizon spun off the wireless unit way back in 2000 and took $10 billion for Vodaphone's minority stake in the company, but with all the success of Verizon as a wireless carrier, it'd likely take more than $10 billion to buy it back.
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