AT&T Warns Of High Margin Smartphones: Stakeholders Debate End Of Apple Subsidy
AT&T warns of massive Q4 charges
NEW YORK | Thu Jan 17, 2013 5:40pm EST
Jan 17 (Reuters) - AT&T Inc warned on Thursday that it will take a fourth quarter charge of about $10 billion related to its pension plan and also said results would be hurt by higher than expected smartphone costs and damage due to Superstorm Sandy.
The telephone company said the pension charge related to an actuarial loss of about $12 billion, which was partially offset by an asset gain of about $1.9 billion.
But despite the gain, it said it lowered its expected long-term rate of return due to the continued uncertainty in the securities markets and the U.S. economy in 2013. It said the pension loss will not affect its operating results or margins.
AT&T results will be hurt by higher than expected smartphone costs...again as others are saying they sold so many IPhones and had to subsidize 7 to 8 million iPhones.....they are crying now but will see positive later....as for Apple this is very good news and some #$%$ are thinking this is a negative for Apple but it is a positive all the way.
They've been threatening to end the subsidies since the blowout quarter in April. They advertise nothing but Samsungs and sell nothing but iPhones. Quitcher #$%$ and get w/the program. Make it up on the 2 year contracts and the fact that iPhone users are responsible for 80% of revenue streams and downloads and also are not low life ghetto people wanting handouts like most of Samdung's customers