Even though the Dow Jones Industrial Average was still cheering yesterday's QEIII announcement by The Fed today, dividend titans AT&T (NYSE: T ) and Verizon (NYSE: VZ ) ended the day with a thump, with each closing down 2.3%.
This may seem interesting as investors and consumers alike are cheering the already seemingly better than expected sales of Apple's (Nasdaq: AAPL ) iPhone 5. The company had to push back preorders after just a few hours of offering the service.
While those sales bring lucrative data plans to both Verizon and AT&T, they come with a big price tag: subsidies. More phones means these carriers have to shell out more cash to subsidize the world's hottest mobile device.
Apple is the most influential company in technology and has put these carriers between a rock and a hard place. That's good news for Apple shareholders and potentially bad news for the carriers. The power shift from the carriers to the handset makers can not be understated.
If you’re looking for a recommendation on how to play Apple along with continuing updates and guidance on the company whenever news breaks, we’ve created a brand new report that details when to buy and sell Apple. To get started, just click here now.
If you came here looking for more great dividends like AT&T and Verizon make sure you read about The 3 Dow Stocks Dividend Investors Need.
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Report this Comment On September 15, 2012, at 1:38 AM, larryw4csc wrote:
Fool said, " the world's hottest mobile device. "
I thought this was about iPhone5, right? The World's Hottest Mobile Device is Samsung's Galaxys. Samsung has 30% of the smartphone market, compared to Apple's 18%, worldwide.
All the product placement hype and ad revenues won't change this reality....Get it right, please.
Thanks.
...from outside the Apple Reality Distortion Field...
Report this Comment On September 15, 2012, at 7:45 AM, TMFBWItime wrote:
@larryw4csc
Despite lower market share Apple commands 73% of the smartphone industry profits while Samsung collects 26%. That's before the iPhone 5 release, and nothing to sneeze at.
The iPhone, as a standalone business, is now bigger than all of Microsoft.
Calling the iPhone the world's hottest mobile device is no exaggeration.
Thanks for the comment.
Fool on!
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