New iPhone helping Apple stocks, but it’s still getting creamed by Verizon and AT&T
Over the past several years, Apple has arguably gotten the better end of its iPhone partnership with the carriers — but right now, it’s the telecoms that have investors more excited.
Since April 9, Verizon and AT&T are the second- and third-best performers among the 30 Dow Jones industrial average stocks, rising 8.2% and 7.8% respectively. In a tumultuous month for the stock market, the only Dow company to outpace the two telecom giants is Travelers.
During that same one-month period, Apple’s stock, which is not in the Dow, has tumbled by nearly 11%.
That drop is particularly head-scratching given the strength of Apple’s recent earnings report. The tech behemoth reported much better-than-expected sales and profits, particularly from the iPhone, which made its debut in China.
The telecoms had some surprises of their own last quarter. A sharp sequential decline in iPhone sales in the United States provided Verizon and AT&T’s wireless service profit margins with a much-needed shot in the arm. Both companies pay heavy up-front subsidies to bring the cost of iPhones down to $200 for their customers.