LeCanadian

Top Menu

  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

Main Menu

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
Sign in / Join

Login

Welcome! Login in to your account
Lost your password?

Lost Password

Back to login
  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

logo

Header Banner

LeCanadian

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • 5 ways sudoku boosts brain health

  • 10 tips to successfully market your law firm

  • 7 Amazing Gifts for Kids Who Like to Cook

  • Make Mortgage Overpayments Work for You

  • Son shares warning for immunocompromised after fully-vaccinated Tampa Bay dad dies from COVID-19

Business
Home›Business›Apple Inc’s iPhone 7 Release Could Dampen Margins for Big Three Wireless Carriers: Analyst

Apple Inc’s iPhone 7 Release Could Dampen Margins for Big Three Wireless Carriers: Analyst

By admin
September 21, 2016
1582
0
Share:

The latest iPhone may have consumers flocking to Canada’s Big Three wireless carriers to upgrade their smartphones, but the providers’ margins could take a hit in the next quarter due to the anticipated increase in sales, according to one Bay Street analyst.

Higher demand for new hardware is expected to put incremental pressure on the costs of acquiring and retaining customers across the industry, Barclays Capital Inc. analyst Phillip Huang wrote in a note Monday.

Sticker shock for the new iPhones — prices range from about $400 to $800 on two-year plans, which is higher than what U.S. consumers will pay even when accounting for the weak Canadian dollar — doesn’t appear to be scaring away buyers. Pre-ordered stocks of iPhone 7 and iPhone 7 Plus were largely sold out across the country despite their expensive price point, resulting in steep discounts for older iPhones.

“We believe very limited pre-order supply was allocated to the Canadian carriers this year, partly due to the strong demand in the U.S.,” Hunag wrote.
Related

Apple Inc iPhone 7 Plus hasn’t even hit the stores yet and it’s already sold out around the world
Apple Inc stocks hit 2016 high on iPhone 7 optimism, company market value peaks above US$600 billion
Apple iPhone 7 and 7 Plus review: No headphone jack, but camera alone enough to impress

“Despite limited supply of the new iPhones, the carriers are capitalizing on the increased traffic to their stores with deeply discounted older iPhone models to ensure customers do not walk out empty-handed.”

The larger volume of upgrades is expected to dampen growth in earnings before interest, tax, depreciation and amortization (EBITDA), Huang wrote, as companies will have to spend more on hardware and absorb the discounts.

He believes older iPhone models will drive most sales next quarter, as it will be challenging for consumers to get their hands on the latest models that have made headlines for being waterproof and, more notoriously, for lacking a headphone jack.

Carriers are capitalizing on the increased traffic to their stores with deeply discounted older iPhone models to ensure customers do not walk out empty-handed

Discounts for older models vary by region and provider. The best deal appears to come from Telus, which is giving away the 64 GB iPhone 6S for free on a two-year contract.

On top of the iPhone spree, back-to-school pricing deals are expected to drive more consumers to update their hardware and subsequently place additional pressure on costs and EBITDA, Huang wrote. Major carriers threw in extra data along with new smartphone purchases to entice subscribers in the busy shopping season.

The tighter margins in the third quarter come after second quarter results beat analysts’ expectations by a long shot when the Big Three added about 195,000 subscribers.
Advertisement

Wireless continues to steal the spotlight from traditional telephone, television and Internet business lines as the highest growth segment as people cut their cords, although the shift to faster Internet connections has also been a bright spot for telecoms. Heavy price competition for wireline spread from Ontario and Quebec to Western Canada over the summer, with Shaw and Telus both launching stellar deals for their ultra-fast Internet packages for new customers willing to sign contracts.

Read More..

Post Views: 1,662
Previous Article

The Canadian Auto Sector is in Great ...

Next Article

CETA Gains Support of Key German Party, ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Business

    Facebook Grapples With live-streaming’s Dark Turn in Police Shootings

    July 9, 2016
    By admin
  • Business

    Ashley Madison not as Discreet, a lot More Deceptive than it Said, Probe Finds

    August 24, 2016
    By admin
  • Business

    Maple Leafs Keeping Auston Matthews in Good Hands

    October 24, 2016
    By admin
  • Business

    Toronto Home Prices Jump in October Despite New Mortgage Rules

    November 3, 2016
    By admin
  • Business

    The Awful Truth that Lies Beneath the Talk of Interest Rates: Wells

    August 29, 2016
    By admin
  • Business

    Plug-ins, Extensions and Other Solutions Suggested to Combat Fake News on Facebook

    December 18, 2016
    By admin

Featured Petition

  • Bell Baker’s John Summers – Stop a Crime Against Humanity – What would his Mother think?
  • John E Summers: Ottawa Lawyer Attacks Motherhood and Civil Rights – Support His Disbarment
  • Stop Ottawa Lawyer John Summers’, Marcella Carby-Samuels’ & David Tenenbaum’s Ab
  • Week
  • Month

Week

Sorry. No data so far.

Month

Sorry. No data so far.

Popular on The Le Canadian

  1. AgoraCosmopolitan
  2. Agora Publishing Consortium
  3. Le Journal Canadien
  4. Dominion: Food News
  5. LeCanadian.com
  6. The Ottawa Star
  7. Capitalistocracy.com
  8. Agora Books Author House
  9. First Nations Press
  10. The Etiquette Show
  11. Ontario People's Front





Mark's



Recent Posts

  • 5 ways sudoku boosts brain health
  • 10 tips to successfully market your law firm
  • 7 Amazing Gifts for Kids Who Like to Cook
  • Make Mortgage Overpayments Work for You
  • Son shares warning for immunocompromised after fully-vaccinated Tampa Bay dad dies from COVID-19
  • Catching Covid-19 after being vaccinated isn’t a myth. It happened to me
  • My COVID Story: “I got COVID after being fully vaccinated”
  • Albertans fully vaccinated for COVID-19 urged to stay cautious during pandemic’s 4th wave
  • I got the vaccine – and then I got Covid: Readers share their stories
  • Brazilian minister tests positive for Covid after meeting maskless Johnson

Most Viewed Posts

No Posts found

Visitors

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating