True, the device is a clear draw to consumers. As we recently saw, AT&T informed investors it will set an all-time record for smartphone sales in its current quarter, and the iPhone was probably no small player in helping AT&T achieve this impressive feat, as we now know the new iPhones sold like hot cakes in their first weekend on the market.
However, investors weren't as enthusiastic about the news as one might expect and promptly sold the stock off. Why? Because while a blessing over the long term, heavily subsidized smartphones like the iPhone can be a curse to AT&T's margins in the short term. In the video below, Fool contributor Andrew Tonner discusses this peculiar scenario and how it should affect AT&T in greater detail.
The titans of tech
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Apple's just one of five key players jockeying for position in the trillion-dollar mobile revolution. To find out which of these giants is set to rule the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!
The Next Industry to Crumble...
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Imagine owning Amazon.com (up over an insane 4,000% since 2001) when Internet sales rendered big-box retailers obsolete... Now an industry 99% of us use daily is set to implode... And 3 established companies are perfectly positioned to take advantage of this game-changing economic shift. Enter your email address below to find out how YOU can take advantage!
