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Analyst: ATT stock plunge saved by Apple

updated 03:40 pm EST, Thu January 10, 2008

Cowen on ATT and iPhone

Investor jitters over statements by AT&T chief executive Randall Stephenson about the home phone business are "overdone" and neglect the likely growth triggered by the iPhone, says a new research note from financial institution Cowen and Company. The group contends that a 10 percent drop in AT&T's stock value triggered by warnings about sagging landline subscriptions are exaggerated and that the company's cellular service is more than compensating for the drop. The carrier will outgrow its rivals by as much as 15 percent over the next year, Cowen predicts.

A large portion of this expansion will be tied to the iPhone, says the firm. Expected sales of the iPhone during the last calendar quarter of 2007 are reported to be very high for the firm and may help boost the number of new subscribers to AT&T's cellphone service from 2.36 to 2.4 million in the same period. This trend will reportedly continue on into 2008 and should be crucial to driving an overall surge in AT&T's performance over the next 12 months. General growth in AT&T's cellular business is also expected on top of the device-specific results.

The analysis mirrors similarly aggressive claims which have said that Apple may have sold as many as 5 million iPhones over the holidays and would contribute substantially to AT&T's growth as well as its own.

By Electronista Staff
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  1. ClevelandAdv

    Fresh-Faced Recruit

    Joined: Jul 2004



    buy T

  1. gambit-7

    Fresh-Faced Recruit

    Joined: Feb 2001



    I know of five people who have the iPhone, bought just in the Christmas season alone. Mostly with Christmas money, as gifts to themselves.

    Of course that's not even counting the people I knew that had them before the holiday season. Oh, and several executives at the company starting to wonder just how necessary is the Blackberry for the company with a product like iPhone out there.

    This thing is huge and will only get bigger. Apple played its hand well, both in designing a product, allowing it to build its own hype, and now marketing the h*** out of it. Well played.

    Posted from my iPhone

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