Shares of telecom giant Verizon Communications
But AT&T's own first-quarter report is on tap for Tuesday morning, just hours ahead of smartphone king Apple
Wall Street analysts believe that AT&T will report flat earnings year over year on a modest 1.9% revenue increase. Management didn't provide any forecasts for the quarter, but the team does feel bullish about 2012 in general. "I directly expect revenue to grow for the entire year, for the overall," CFO John Joseph Stephens said on the last earnings call. "Whether it occurs fully in the first quarter or it occurs later, it will occur for the full year. We expect revenues to grow."
Maybe that's a sly acknowledgment of how important Nokia
I can't blame the carriers for exploring new smartphone platforms, ones that come with smaller upfront subsidies than the iPhone. The Lumia 900 comes with a $350 rebate if ordered with a two-year service plan, but the iPhone 4S gets a $450 discount. That's $100 of pain applied directly to AT&T's gross margins with every time a customer chooses an iPhone over a Lumia.
So don't expect any fireworks around AT&T's first-quarter figures, but do look for a discussion on the company's commitment to iPhones and Lumias. That discussion will speak volumes about AT&T's future margins -- and give you a taste of what's coming for Apple as well. Mobile computing is a trillion-dollar market and the carriers want a bigger slice of that enormous pie.
Fool contributor Anders Bylund holds no position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool owns shares of Microsoft and Apple. Motley Fool newsletter services have recommended buying shares of Nokia, Apple, and Microsoft and creating a bull call spread position in Microsoft and another bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.