Sprint Posts Sales Loss, but iPhone Lifts Revenue

Nabbing the iPhone was a victory for Sprint Nextel, but the blockbuster handset has yet to pay off in profits for the company.

Sprint Nextel, the nation’s No. 3 cellphone carrier, on Wednesday reported a net loss in the fourth quarter of $1.3 billion, or 43 cents a share, in contrast to a net loss of $929 million in the same quarter a year ago. The company said revenue climbed 5 percent to $8.7 billion.

Excluding charges, the loss was 35 cents a share. Wall Street analysts had expected a loss of 38 cents a share. Sprint’s earnings illustrate the impact of Apple’s iPhone. The October-to-December period was the first quarter that the company offered Apple’s smartphone, which has been a best seller for its rivals, ATT and Verizon. The company said it sold 1.8 million iPhones.

But the iPhone had a negative impact on the company’s balance sheet because of the costs of equipment and subsidies for the handset, the company said.

Apple said it sold 37 million iPhones during the quarter, of which ATT sold 7.6 million units and Verizon sold 4.2 million. That means 37 percent of iPhones sales were in the United States.

The iPhone is crucial ammunition for Sprint in its battle for new subscribers. While smartphone sales are soaring, the number of new customers signing up for phone contracts has been shrinking because so many people already have cellphones. Sprint’s strategy to attract subscribers is its unlimited data plan, which ATT and Verizon no longer offer.

It appears to be working. Sprint said it added 1.6 million net subscribers in the October-to-December period, its best quarterly gain in six years and up from the previous quarter, when it added 1.3 million subscribers. Forty percent of its iPhone sales were to new customers. Over all, Sprint has 55 million subscribers.

“Our once-battered brand is strengthening and gaining momentum,” Dan Hesse, Sprint’s chief executive, said in a conference call.

However, Sprint has said that it expected the iPhone to initially depress its earnings because of the high costs of subsidizing each handset, which lowers the retail price of the phone for customers signing a two-year contract.

The company’s chief financial officer, Joseph J. Euteneuer, previously said that each iPhone would cost the company about $200 more than other smartphones. The company said it does not expect the phone to turn a profit until 2014.

Sprint has suffered after a $70 billion merger with Nextel Communications, a smaller carrier, in 2005. Among several issues, the companies struggled to combine their cultures and network technologies.

Although Sprint’s customer base is now growing, Rick Franklin, an analyst with Edward Jones, said the results weren’t as rosy as they seemed.

He noted that 60 percent of Sprint subscribers are postpaid — those who have passed credit checks and committed to contracts — while the rest are prepaid customers, who pay as they go. By contrast, postpaid subscribers, which are considered more valuable, account for 80 percent of Verizon’s subscribers, he said.

“It is going to take Sprint a long time to regain its profitability,” Mr. Franklin said. “The bulk of their growth continues to be in low-value, prepaid customers that generate very little revenue per month and probably lower margins.”

Sprint is also making a bet on faster networks to bring in new customers. The company said it would increase capital spending this year to about $6 billion to build networks comparable with those of ATT and Verizon. Sprint has been investing in an initiative called Network Vision, which it has said would consolidate network technologies and reduce overall costs of operation.

Chetan Sharma, an independent mobile analyst, was optimistic. He said that Sprint’s deployment of so-called fourth-generation LTE networks was faster than Verizon’s, with 12,000 cell sites expected by the end of the year. That, combined with the introduction of the iPhone, could turn things around for Sprint, he said.

Article source: http://www.nytimes.com/2012/02/09/technology/sprint-posts-net-loss-but-revenue-gain-on-iphone.html

iPad 3, iTV and iPhone 5 Should Drive Apple to $665: Money Pros

Apple
[AAPL 
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] may be edging toward $500, and that kind of round number is usually a psychological level of resistance, but the Fast Money traders say whatever you do – don’t play Apple short.

“I still look at this company and say to myself, it’s still extremely cheap,” says Pete Najarian. “Why people are shooting against this – I have no idea.”

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“To sell or be short is suicidal,” adds trader Josh Brown. “This stock has never given you a reason to bet against it.”

In fact, Canaccord Genuity analyst Michael Walkley sees 3 reasons to bet with Apple. They are iPhone5, iTV and iPad3. And the demand for these gadgets, he believes, should drive the stock more than $150 higher to $665.

iPad 3

This new gadget could be a powerful catalyst very, very soon. Walkley tells us he expects the iPad3 to premiere the first week of March.

“There’s a major trade show in Barcelona at the end of Feb,” he explains. A lot of Apple competitors will announce rival products and we think Apple will want to steal thunder back for the iPad 3. So my firm thinks it comes during the first week in March.

iTV

Walkley thinks the newest iteration of Apple TV could drive a whole new leg of growth for the company. The popular belief is that iTV will integrate Siri – voice recognition software – as well as all the other Apple gadgets, making it the piece de resistance of the Apple universe.

“With all the growth and momentum and all the market share they can win, we think shares remain undervalued. Apple is our top pick,” says Walkley.

Trader Jon Najarian agrees entirely. However with the stock trading near $500 he also knows a bullish bet requires a lot of capital. Therefore he suggest playing Apple with options. “I’d play it with upside calls,” he says.

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NEW SLIDESHOW: Top Fashion Stocks for 2012

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Trader disclosure: On Feb 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders; J. Najarian is long CIGX; J. Najarian is long CME; J. Najarian is long CBOE; J. Najarian is long call spreads in AAPL; J. Najarian is long call spreads in BAC; J. Najarian is long call spreads in GS; J. Najarian is long call spreads in JPM; J. Najarian is long call spreads in CSCO; J. Najarian is long call spreads in IBM; J. Najarian is long call spreads in BWLD; J. Najarian is long call spreads in WHR; J. Najarian is long call spreads in GRPN; Najarian is long AAPL; Najarian is long C; Najarian is long JPM; Najarian is long MS; Najarian is long YHOO; Najarian is long PEP; Najarian is long MS; Weiss is long DMND; Cortes is long SO; Cortes is long MO; Cortes is long treasuries; Cortes is short SINA; Cortes is short SOHU; Cortes is short BAC; Cortes is short euro currency; Cortes is short Canadian dollar; Brown is long AAPL; Brown is long V; Brown is long JKH; Grasso is long ASTM; Grasso is long AVAV; Grasso is long BA; Grasso is long D; Grasso is long FIO; Grasso is long LIT; Grasso is long MHY; Grasso is long MO; Grasso is long PFE; Grasso is long PRST; Grasso is long S; Grasso is long XLU

For Michael Walkley (AAPL) disclosures:
Canaccord Genuity or any of its affiliated companies is a market maker or liquidity provider in the securities of the relevant issuer or in any related derivatives.
Canaccord Genuity intends to seek or expects to receive compensation for Corporate Finance/Investment
Banking services from the relevant issuer in the next six months.

For Mark Mahaney
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of Akamai Technologies Inc, eBay Inc, Netflix Inc, Yahoo! Inc. This position reflects information available as of the prior business day.

Within the past 12 months, Citigroup Global Markets Inc. or its affiliates has acted as manager or co-manager of an offering of securities of Google Inc, Groupon, Inc..

Citigroup Global Markets Inc. or its affiliates has received compensation for investment banking services provided within the past 12 months from eBay Inc, Google Inc, Groupon, Inc.

Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from Yahoo! Inc

Citigroup Global Markets Inc. or an affiliate received compensation for products and services other than investment banking services from Amazon.com Inc, Akamai Technologies Inc, eBay Inc, Google Inc, Groupon, Inc., Priceline.Com Inc, Yahoo! Inc in the past 12 months

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as investment banking client(s): Groupon, Inc., eBay Inc, Google Inc, Yahoo! Inc

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, securities-related: Amazon.com Inc, Akamai Technologies Inc, eBay Inc, Google Inc, Groupon, Inc., Priceline.Com Inc, Yahoo! Inc

Citigroup Global Markets Inc. currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: Amazon.com Inc, eBay Inc, Google Inc, Groupon, Inc., Priceline.Com Inc, Yahoo! Inc

Citigroup Global Markets Inc. or an affiliate received compensation in the past 12 months from Groupon, Inc.

Analysts’ compensation is determined based upon activities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates (“the Firm”). Like all Firm employees, analysts receive compensation that is impacted by overall firm profitability which includes investment banking revenues

The Firm is a market maker in the publicly traded equity securities of Amazon.com Inc, Akamai Technologies Inc, eBay Inc, Google Inc, Groupon, Inc., Netflix Inc, Priceline.Com Inc, Yahoo! Inc.

For Todd Gordon
No Disclosures

CNBC.com with wires.

Article source: http://www.cnbc.com/id/46327561

1 of 7 from Ethical-iPhone 5 activists deliver their plea to Apple (photos)

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Article source: http://news.cnet.com/2300-13579_3-10011247.html

3 Realistic iPhone 5 Concepts That May Come True [PICS]

With the rumor mill hinting that the iPhone 5 may launch as early as this summer, we’re beginning to see more purported details regarding the next-generation iPhone surface on the Web. The most common information suggests an upgraded camera (12-megapixel Sony sensor), a higher capacity battery, larger display (4-inches), 4G LTE antennas and lastly, NFC.

Top iPhone 5 concepts that may be on the right track

However at the same time we’re seeing many more iPhone 5 concepts pop up. While some may be out there and not likely to be the iPhone 5 (or 6,7 and 8 for that matter), others show us something more tangible. Here are the top three iPhone 5 concepts we’ve seen to date that may or may not have some resemblance to the upcoming iPhone 5.

Full-screen iPhone 5 - Antonello Falcone has designed this beautiful iPhone 5 concept with no bezel that ultimately allows for a larger display but still maintaining the overall dimensions of the iPhone 4S.

iPhone Air - Based on the MacBook Air, its cheese-wedge design will allow for the iPhone 5 to possibly house the thick 4G LTE antenna while still maintaining a thin profile.

iPhone 5 nano - Ever since the iPhone 4 launched, we saw the hype that was built when Apple announced they were releasing a white variant. So it comes as no surprise if Apple follows its iPod nano strategy and decide to release it in a host of new colors.

Do you think any of the features from these three iPhone 5 concepts will make it into the production model? Sound off in the comments below!

Article source: http://www.motoringcrunch.com/news/mobile-tech/9902-best-iphone-5-concepts

iPhone 5 design rumors: slimmer, lighter frame, waterproof tech, Home button …

InRumor offers you a recap of the iPhone 5 rumors that have circulated this year, as far as design specs are concerned.

iPhone 5 feature “innovative display technology,” analyst says

In early January, Charles Moore at The iPhone 5 News Blog speculated that the iPhone 5 might be powered by an A6 CPU.

Citing a post at DigiTimes, Moore wrote that the next iPad models could be the first to use Apple’s quad-core A6 processor. At present, iPad 2 and iPhone 4S feature the dual-core A5.

iPhone 5 could feature liquipel technology

A small U.S. company has created a method of using a “nano” coating of the inside and outside of the iPhone that will protect it if you are clumsy by nature or your job requires you to be near water. This new tech is called Liquipel.

The company, based in Santa Ana, California posted a video on YouTube that shows an iPhone 4 playing a video while submerged in water.

iPhone 5 could be lighter and stronger thanks to Gorilla Glass 2

In anticipation of the future iPhone 5, analysts predicted a future partnership between Apple and Corning, with the presentation of Gorilla Glass 2 at the CES.

“The thinner Gorilla Glass 2 enables slimmer and sleeker devices, brighter images, and greater touch sensitivity,” a press release from Corning stated.

The new Gorilla Glass is up to 20% thinner than the original but it still offers the same strength.

Home button could disappear from the future iPhone

In mid-january, tech sites went abuzz after an iPhone 5 concept-video by designer Kris Groen was posted on the web. The clip showed a device with a 4-inch display in which the home button has been replaced by two separate home bumpers on the side.

The idea behind the concept is that with the future iPhone the user can simply squeeze the size of the phone on the left or right side of the device to use the home button. By squeezing the buttons there a number of functions that the smartphone can perform, with no need to touch the screen.

HzO could make iPhone 5 waterproof

The technology developed by HZO is able to make watertight any electronic component by applying a protective film at the nanometer scale on them during the assembly of a device

“HzO uses a unique coating processes to shield almost anything from water and corrosion damage,” the company said.

“Unlike other water damage solutions, with HzO technology a device is not sealed, water is able to enter. Instead, the electronic components inside the device are coated to provide protection, leaving the device unencumbered and always guarded against unexpected accidents.”

LTE could mean bigger battery for iPhone 5, analyst says

Carlo Raphael Diokno at popherald.com speculated that the next-generation iDevices will have to integrate a heavier battery if they are to feature LTE technology.

Diokno assumed that Apple will need to insert a heavier battery if it plans on introducing Long-Term Evolution to its gadgets in 2012.

The analyst also concluded that if the Cupertino company decides to add either the 4G/3G toggle or 4G, there is a high possibility that the next-gen iPhone and iPad will be thicker due to antenna and the battery.

iPhone 5 will feature 4-inch screen, according to analyst

In a note to his clients, Susquehanna Financial analyst Chris Caso wrote that the iPhone 5 will enter production this year in June, ahead of its fall release, and that it will come with a larger 4 inch screen.

The analyst also predicted that the Cupertino tech giant will shift around 36 million iPhones in the first quarter of 2012.

Sony’s 13-megapixel CMOS image sensor could help make iPhone 5 thinner

Sony’s “next-generation” back-illuminated CMOS image sensor layers the pixel section the formations of back-illuminated structure pixels onto chips that have the circuit section for signal processing.

Two new eight and 13-megapixel sensors equipped with a “unique RGBW Coding” function that allow a higher image and noise quality have been released by Sony. In addition, they feature HDR (high dynamic range) imaging skills, which ensure more dramatic lighting in videos.

This new design seems perfect for thin devices that need to work properly both in and outdoors, and the iPhone is a perfect example in this sense.

Article source: http://www.inrumor.com/in/technology/iphone-5-design-rumors-slimmer-lighter-frame-waterproof-tech-home-button-and-others/

iPhone 5 petitions demanding ethical work conditions headed to Apple stores

Workers at Foxconn’s factory in Shenzhen, China, a major supplier of electronics companies like Apple.

(Credit:
CBS)
(CBS) – Activists plan to deliver two petitions to Apple stores demanding ethical work conditions for laborers assembling the upcoming iPhone 5.

Full coverage of Apple at Tech Talk
The dark side of shiny Apple products
Apple, Dell, HP Looking into Foxconn Factory Suicides

According to CNET, the watchdog group SumOfUs will deliver their own petition, as well as one created by Change.org, to Apple stores worldwide. Cities to receive petitions include New York, Washington, D.C., San Francisco, London, Sydney, and Bangalore.

Over 250,000 combined signatures have been collected to pressure Apple into releasing the first ethical iPhone.

The petitions were created in response to an expose by the New York Times and an episode of This American Life – both painted a dark picture of suffering factory workers in China. Days after the Times article was published, Cook sent an email to employees stating the company cares about all workers.

“We care about every worker in our worldwide supply chain,” Cook said in the email. “Any accident is deeply troubling, and any issue with working conditions is cause for concern. Any suggestion that we don’t care is patently false and offensive to us.”

Activists petition Apple for ethical iPhone 5

The opposition points out that if Apple put enough pressure on the manufacturers, factories would have no choice but to improve work conditions. A former Apple executive told the Times anonymously, “Suppliers would change everything tomorrow if Apple told them they didn’t have another choice.”

Foxconn manufactures over 50 percent of the world’s electronic devices for companies like Microsoft, Samsung and Apple. Conditions are so bad that a spike of suicides plagued the company in 2011. Because suicides are so common, the company placed nets around buildings to prevent people from jumping.

“Can Apple do this? Absolutely.” SumOfUs said in their petition. “Apple is the richest company in the world.”

Article source: http://www.cbsnews.com/8301-501465_162-57373421-501465/iphone-5-petitions-demanding-ethical-work-conditions-headed-to-apple-stores/