Investors aren't as impressed with AT&T's
More on that in a minute; first, let's dig through the financials. Revenue fell slightly to $31.5 billion in Q3, below the $31.6 billion Wall Street was targeting. Per-share earnings rose 13% after excluding one-time gains realized in last year's third quarter. Lower costs led to strong gains in the operating margin, which rose to 19.8% from 17.2% a year ago.
Investors can thank the wireless business for the structural improvements. Operating income from that airy segment rose 32% on improved margins. AT&T also passed 100 million wireless subscribers as smartphones accounted for two-thirds of device sales.
Handsets using Google's Android operating system accounted for roughly half of those sold. AT&T also activated 2.7 million iPhones during the quarter. And yet those numbers are likely to pale in comparison to what we see during the upcoming holiday shopping season.
"We expect the fourth quarter to be the best for smartphone sales ever," The Wall Street Journal quotes AT&T CEO Ralph De La Vega as saying during this morning's conference call.
Sound familiar? It should. Apple
"We're very confident that we will set an all-time record in the December quarter for iPhone sales," Cook said during a call with analysts.
Therein lies the paradox. Apple came up light against estimates. AT&T met earnings estimates but fell short on revenue. We'll have a better idea about Verizon's
If anything, it's a shift. Sales that would have come last quarter have now shifted to the holiday quarter. Be warned, short-sellers. Whether you're betting against Apple, AT&T, or Verizon, your window for profiting from the Mac maker's failure to deliver the iPhone 5 is closing rapidly.
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