Shares of Apple Inc. rose more than 3 percent on Thursday as investors bet on strong demand for its media-playing iPhone, almost a week after its U.S. launch, and speculation mounted over plans to sell the device in Europe.
Analyst estimates for iPhone sales in its first weekend run as high as 700,000 units and investors are expecting that momentum to continue.
AT&T Inc., the exclusive U.S. provider for the phone, said it had virtually sold out of the device in that time, though neither company has provided sales data.
“The stock is obviously anticipating very very strong sales for the iPhone and very good follow-through sales,” said Andy Hargreaves of Pacific Crest Securities. “The stock isn’t going to be a one-month wonder.”
Apple has said it will start selling iPhones in Europe this year and in Asia in 2008, but gave no further details.
European media reports this week have said Apple may be close to deals with carriers in France, Germany and Britain, a three-country strategy that would mimic the launch of its popular iTunes online music store in Europe in 2004.
Apple shares have increased more than 50 percent since the company unveiled in January the cell phone that combines Web browsing with the music and video playing capabilities of its best-selling iPod device.
“People are anticipating strong sales to continue through next year,” said Hargreaves. “If you don’t believe that’s true then definitely the stock is expensive. we’re kind of on the side that the momentum will continue.”
Hargreaves has a 12-month price target of $130 for the shares. That does yet not include full expectations for events such as widening iPhone distribution to electronics retailers including Best Buy.
Hargreaves said he expects Best Buy to start selling the phone in time for back-to-school shoppers.
Investors are also keeping close watch for news on how quickly Apple is able to replenish stocks of the phone and indicators of its financial impact. Research firm iSuppli said on Tuesday the phone would generate a 55 percent profit margin, after hardware and manufacturing costs.
In Europe, wireless operators including Vodafone Group Plc.,T-Mobile, owned by Deutsche Telekom and Orange, owned by France Telecom have been cited as potential iPhone partners.
Telefonica’s 02 said on Thursday that it had not signed a deal with Apple after reports that it was poised to clinch the first European agreement in what would be a blow to Vodafone, which operates in multiple countries.
“It would be a somewhat of a disappointment” if Vodafone did not reach a deal with Apple since it is such a large carrier size, Hargreaves said.
Apple shares were up $3.18, or 2.5 percent, to $130.35 on Nasdaq in the early afternoon, after trading as high as $131.75 earlier in the session. AT&T shares were down 31 cents to $41.19 on the New York Stock Exchange.
Wireless Mobile Telecom Wireless News
In support of the launch of Millionaire Music Edition mobile on the Sprint Game Lobby, developer and publisher Capcom Interactive and Disney-ABC Domestic Television are giving away a chance to appear as a contestant on the syndicated game show Who Wants To Be A Millionaire.
Sprint subscribers can enter the contest between July 1 and August 15, 2007. In addition to the chance to compete on the popular program, the grand prize winner will be awarded two round-trip airfare tickets to New York City, accommodations for three nights and $1,000 cash. No purchase is necessary and official rules The new Millionaire Music Edition is available free as a demo on select Sprint and Nextel phones. In the all-music edition of the popular game, players’ test their knowledge of all things music with 1,000 questions.
Like the show, the wireless game begins with a common knowledge 100 dollar question and culminates with the $1 million dollar question.To help players progress through the game, four lifelines are available including “Ask the Audience,” “50:50,” “Phone a Friend” and “Switch the Question.”
“Millionaire Music Edition is the perfect mobile game on the go. It’s instantly familiar to anyone who’s seen the show, and the questions are incredibly accessible, yet still very rewarding as the action progresses,” said Matt Gillis, Senior Vice President of Publishing, Capcom Interactive. “If you’re a music fan, or simply enjoy a rich trivia game, Millionaire Music Edition is the game for you.”
Wireless Mobile Telecom Wireless News
The bidding may not be over for the parent of Bell Canada, which over the weekend agreed to a buyout offer of $35.1 billion from a consortium led by the Ontario Teachers Pension Plan Board in the biggest Canadian takeover ever.
The group led by the pension plan beat out several other bidders including New York-based Cerberus Capital Management with billionaire Hong Kong-based Canadian citizen Richard Li’s Pacific Century Group, and the Canada Pension Plan Investment Board with backing from American buyout firm Kohlberg Kravis Roberts & Co.
Telus, Canada’s second largest telecom, pulled out of the bidding for Bell Canada parent BCE, Canada’s biggest telecom company.
But Telus CEO Darren Entwistle told the Globe and Mail his Vancouver-based company hasn’t ruled out taking a run at Bell Canada.
“It’s been a hallmark of our company that we do not close doors,” Entwistle said, without signaling which way he was leaning. “We keep our options open and this is no exception.”
Bell Canada CEO Michael Sabia acknowledged the possibility of a hostile bid when he told reporters that the company’s board “has a fiduciary obligation to continue to be open to superior proposals.”
A source close to Cerberus as saying they have not given up on acquiring Bell.
In the deal for BCE, Thomson estimates that the buyers would also take on about $12.1 billion in net debt.
The deal will require approval from shareholders as well as federal government regulators. Sabia said he expects the deal to close in the first quarter of 2008.
Wireless Mobile Telecom Wireless News
THE first words from the first buyer of an iPhone at Seattle’s University Village Apple Store were exultant, but not the expected happiness at scoring what may be the hottest electronic item of the year.
“Now for a shower!” shouted Greg Korsgard, 30, who said he’d been in line for 26 hours. He got 1½ hours’ sleep in his car by trading line-holding duties with the No.2 in line, Eric Nelson, 30.
But what about trying the new phone, asked media types clustered thickly around him.
“After the shower,” replied Mr Korsgard, who was in the first group of 25 customers allowed into the store at 6pm on Friday, to the cheering and clapping of Apple employees clad in black T-shirts. Fellow devotees in New York queued for up to four days in advance of the phones’ launch.
Apple has not disclosed how many iPhones were available at launch, but Trip Chowdhry, an analyst with San Francisco-based Global Equities, estimated Apple stores sold about 128,000 on the first day, while AT&T stores sold about 72,000.
Analysts expect it will sell out by early this week — between sales rung up at retail stores and online through Apple’s website, which has been a major distributor for other Apple products. AT&T was offering one phone a customer and Apple stores two.
Techies and luminaries — even the co-founder of Apple and the Mayor of Philadelphia — were among the inaugural group of iPhone customers around the United States.
Steve Wozniak, the former partner of Apple CEO Steve Jobs, showed up at a Silicon Valley mall at 4am. He helped keep order outside the Apple store.
A private firm that studies the mobile market, found 64 per cent of US respondents in April were aware of the iPhone, and 14 per cent showed a strong interest in buying one.
“The iPhone has been the first mobile device to create widespread consumer excitement around a mobile phone,” senior vice-president and analyst at M:Metrics Mark Donovan said.
But research by media agency Universal McCann concludes that Apple’s goal of selling 10 million iPhones by the end of next year is ambitious.
The iPhone combines a phone, music and video player with web and email capabilities, but researchers found demand for this type of device was lowest in affluent countries.
Only 31 per cent of Americans surveyed by Universal said they wanted a device with multiple capabilities, and that dropped to 27 per cent in Japan.
Demand was highest in Mexico, where 79 per cent said they would like one converged device, with 72 per cent in Malaysia and Brazil, 70 per cent in India and 65 per cent in the Philippines agreeing, although the mobile markets in these countries are driven by cheap or free handsets.
After the initial wave of curiosity and hype-fuelled buying abates, the iPhone will have to prove that its features justify its price tag, which is comparable with other high-end devices (such as a Treo), but expensive for a mass-market mobile phone.
Senior vice-president of Frog Design Mark Rolston believes the iPhone will be good for all telecom customers, whether they buy the iPhone or not. “You’ll see clones, but more importantly, you’ll see the bar raised by heightened expectations.”
He likened the iPhone’s features to Mercedes-Benz’s introduction of anti-lock brake systems. “We didn’t all end up wanting a Mercedes,” Mr Rolston said. “We learned to expect ABS brakes, and they’re in just about every car made now.”
Wireless Mobile Telecom Wireless News
Apple sold around half 500,000 iPhones the first weekend the device went on sale.
“… Ninety-five percent of iPhone buyers in San Francisco, New York and Minneapolis (home to Piper Jaffray’s offices) purchased the 8GB model, according to a survey conducted by the firm. About half were new customers for AT&T, at least among the 253 people surveyed for the report.”
Wireless Mobile Telecom Wireless News
iLounge.com, the world’s largest and most popular web site devoted to Apple’s iPod, iTunes, and iPhone products, today debuted the latest innovation in its coverage of the
iPhone: a series of five iPhone accessory videos, titled “The First iPhone
Accessories,” designed to help inform new and prospective iPhone buyers
about the wide variety of add-ons coming for Apple’s first mobile phone.
Based upon iLounge’s popular First Looks section, which offers
exclusive photos and details on just-released iPod, iPhone, and Apple TV
hardware, software, and accessories, “The First iPhone Accessories” videos
place the spotlight solely on the add-ons, rather than iLounge’s seasoned
editorial team. Each of the videos offers 3-D looks at new cases, with new
speakers, cables, earphones, and car chargers appearing, as well.
“iPhone buyers may be surprised to discover that some of their favorite
iPod earphones, speakers, and car accessories don’t work properly,”
explained Jeremy Horwitz, iLounge’s Editor-in-Chief. “Our new videos and
First Looks help viewers learn about the headphone adapter cables, charger
compatibility issues, and other insider tips iPhone users need to know
before they accessorize.”
The First iPhone Accessories videos also show off the wide variety of
case designs available and soon to be available for iPhone. Ranging from
fur-coated pouches to elaborately contoured clear plastic shells and
discreet black neoprene holders, iPhone cases offer your choice of
protection, flashiness, or anonymity — whatever’s best-suited to your
personal needs.
Since 2001, iLounge.com has hosted the world’s most popular discussion
forums for iPod, iTunes, and iPhone users. With over 114,000 members and
nearly 1.1 million posts, the iLounge Forums have been covering
iTunes-compatible phones since before the 2005 launch of the ill-fated
Motorola ROKR phone, and now cover iPhones and their accessories. Unlike
many other forums online, iLounge’s forums are aggressively moderated by a
team of superb administrators, moderators, and assistants dedicated to
filtering out surreptitious advertising and objectionable posts.
As with all of iLounge.com’s content, including its
multi-million-downloaded Free iPod Book 3.0 and iPod Buyers’ Guide
publications, the First iPhone Accessories videos and First Looks are
available free of charge from the iLounge.com home page. “iLounge readers
depend upon us for honest, objective, and timely coverage of All Things
iPod, iPhone, and iTunes,” said Dennis Lloyd, Publisher of iLounge.
“Between our videos, First Looks, forums, and daily news updates, we’ve
delivered everything iPhone users have asked for, and then some. Just wait
until they see what’s next!”
About iLounge
Headquartered in Irvine, California, The Media LLC’s iLounge.com is the
world’s leading resource for iPod, iTunes, and iPhone information, not
affiliated with or owned by Apple Computer or any other vendor of iPod
accessories or services. Founded only days after Apple announced the first
iPod in 2001, iLounge has exploded in popularity, today boasting millions
of visitors and tens of millions of page views each month. Its editorial
content is in no way influenced by advertising, paid placements, or other
unsavory practices. iLounge has been hailed by publications such as Forbes,
Time Magazine, cNet, and The Wall Street Journal as the leader in
iPod-related information online, the former deeming iLounge “The ultimate
in product reviews and tutorials on all things iPod.” The site, its
publisher and editors have been spotlighted by the Associated Press, CNBC,
The Guardian (UK), Italian Vogue, The Los Angeles Times, National Post
(Canada), The New York Times, PC Magazine, Reuters, Stuff (UK), TechTV, The
Age (Australia), The Sun (UK), and USA Today, amongst many other leading
newspapers and magazines worldwide.
Wireless Mobile Telecom Wireless News
AT&T Inc. agreed to buy Dobson Communications Corp., a provider of mobile-phone service under the Cellular One brand, for about $2.8 billion in Randall Stephenson’s first acquisition as chief executive officer.
The purchase will add coverage in rural areas to AT&T’s wireless network and save the company $2.5 billion in roaming costs and overhead expenses, San Antonio-based AT&T said today in a statement. Since 1990, the companies have had a roaming agreement in which they pay to use each other’s networks.
Taking into account the expected savings, the purchase price is “reasonable,'’ said Jonathan Chaplin, an analyst at JPMorgan Chase & Co., in a research note. The transaction “makes strategic sense,'’ he said.
The bid continues an acquisition spree begun by former CEO Edward Whitacre, who orchestrated $200 billion in takeovers, turning AT&T into the largest telephone company in the U.S. His last purchase was the $86 billion acquisition of BellSouth Corp. in December. Stephenson took charge of the company this month.
AT&T will pay $13 in cash for each Dobson share, a 17 percent premium over the stock’s closing price today of $11.11 on the Nasdaq Stock Market. The companies expect to get regulatory approval by the end of 2007, AT&T said.
The Dobson purchase will reduce AT&T earnings by 3 cents to 4 cents a share in the first year after the transaction closes, AT&T said. After that, it’s expected to add to earnings and cash flow.
AllTel Purchase
The acquisition is the second this year for a U.S. mobile- phone service focused on rural and suburban markets. Alltel Corp. agreed to be acquired by Goldman Sachs Group Inc. and TPG Inc. last month in the largest leveraged buyout of a telecommunications company.
The sale of other rural providers may follow, Credit Suisse analyst Christopher Larsen said in an interview last month. In addition to Dobson, he identified Rural Cellular Corp., Centennial Communications Corp. and U.S. Cellular Corp. as potential targets.
Other companies with rural mobile-phone operations include Cincinnati Bell Inc. and Alaska Communications Systems Group Inc.
AT&T’s shares rose 76 cents to $41.50 at 4:28 p.m. in New York Stock Exchange composite trading. Dobson’s shares fell 1 cent.
Rural Coverage
Dobson, based in Oklahoma City, has 1.7 million subscribers in 17 U.S. states. Its network covers rural and suburban areas in Alaska, Arizona, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Oklahoma, Pennsylvania, Texas, Virginia, West Virginia and Wisconsin.
The company is the largest wireless provider in Alaska, according to its Web site. It also has more than 200 stores in locations such as Elk City, Oklahoma, and Weston, Wisconsin.
Sales in the first quarter climbed 16 percent to $334.4 million. It reported a loss in the period of $30.6 million, compared with a loss of $10.9 million a year earlier.
AT&T will replace the Cellular One brand with its own, spokesman Michael Coe said.
Dobson and AT&T use the same type of mobile-phone technology, which will make the acquisition easier to manage, AT&T said.
AT&T was represented by Lehman Brothers Inc., with outside legal counsel from Sullivan & Cromwell LLP, Coe said. Dobson was represented by Morgan Stanley, with outside legal counsel from Mayer, Brown, Roe & Maw LLP.
Wireless Mobile Telecom Wireless News
Verizon Wireless has signed a deal with Local Solutions Network to offer local news, weather and sports video over the V Cast network. The channel—Local TV Video—will offer access to news, weather and sports video stories from local television station affiliates, and will include almost 50 markets across the US including New York, Los Angeles and Atlanta. It’s not specified but it sounds like this is over Verizon’s mobile network rather than the MediaFLO broadcast network. Gizmondo suggests that you’ll be able to view the channel from anywhere rather than just the local vicinity, but it would be pretty simple for Verizon to detect where your phone is and offer you the local news just from that area. The channel will be included in the normal V Cast cost.
Wireless Mobile Telecom Wireless News
Verizon Wireless announced a partnership with Atlanta-based local content provider Local Solutions Network to launch the new V Cast Video channel Local TV Video, promising subscribers news, weather and sports clips from local television affiliates in close to 50 U.S. markets ranging in size from New York City to Parkersburg, W. Va. Local TV Video is now available in the News section on select V Cast-enabled handsets.
Wireless Mobile Telecom Wireless News
Huawei Technologies Co., Ltd. (”Huawei”), a leader in providing next generation telecommunications network solutions for operators around the world, recently held the contract signing ceremony in its headquarters in Shenzhen, China with Telfort, part of the Netherlands’ largest telecoms operator KPN, announcing that Telfort will procure the prepay solution of Huawei CBS. Huawei CBS will help operators build an open and horizontal billing architecture with the capability to support various networks and services.
Huawei currently supplies the KPN Group with extensive transmission and all-IP based core network products. Telfort will have the opportunity to significantly shorten its service delivery cycle for 2G and 3G services with the convergent rating, charging and billing infrastructure powered by Huawei CBS.
The benefits of Huawei’s CBS are manifold:
• It provides common and rule-driven rating engine to offer flexibly configurable tariff plans, enabling short time-to-market to win in fierce competition.
• It adopts customer-oriented data model and offers unified customer view, enabling personalized marketing to attract new customers, reduce churn and boost traffic.
• It supports both prepaid and postpaid subscribers with open and modularized architecture, enabling converged operation and multi-supplier environment to reduce CAPEX & OPEX.
Telfort CEO Mr. Marco Visser expressed his satisfaction with the cooperation with Huawei at the ceremony. He said, “Huawei CBS is an important building block for Telfort’s future service development. This is the first time that the KPN Group has been cooperating with Huawei on services, and it marks a deepening of the relationship between us.”
Dr. Haiping Che, President of Huawei Application and Software Product Line, said, “KPN is a prominent European operator that is highly innovative in adopting new services to grow its competitive edge. Our product portfolio is closely aligned with KPN/Telfort’s strategy and well positioned to meet its needs. We will continue to work closely with the KPN Group to help it achieve its business goals.”
About KPN
KPN is the leading multimedia company in the Netherlands, providing consumers and consumer households with fixed and mobile telephony-, internet- and TV services. To business customers, KPN delivers voice-, internet- and data services as well as fully-managed, outsourced ICT solutions. Both nationally and internationally, KPN provides wholesale network services to third parties, including operators and service providers. In Germany and Belgium, KPN pursues a multi-brand strategy with its mobile operations, and serves multiple customer segments in consumer as well as business markets.
At March 31, 2007, KPN served 6.0 million wireline voice subscribers, 8.7 million mobile customers, 2.3 million Internet customers and 0.3 million TV-customers in the Netherlands as well as 15.6 million mobile customers in Germany and Belgium. With 27,165 people (24,799 FTEs), KPN posted revenues of EUR 2.9bn, with an EBITDA of EUR 1.2bn in Q1 2007. KPN was incorporated in 1989 and is listed on the Amsterdam-, New York-, London- and Frankfurt stock exchanges.
About Huawei Technologies
Huawei Technologies is a leader in providing next generation telecommunications network solutions for operators around the world. The company is dedicated to providing innovative and customized products, services and solutions to create long-term value and potential growth for its customers. Huawei’s products and solutions are deployed in over 100 countries and serve 31 of the world’s top 50 operators, as well as over one billion users worldwide.
Wireless Mobile Telecom Wireless News
Apple Up on iPhone Sale Expectations
