Worst of the Week: Bad math

Hello!
And welcome to our Thursday column, Worst of the Week. There’s a lot of nutty stuff that goes on in this industry, so this column is a chance for us at RCR Wireless News to rant and rave about whatever rubs us the wrong way. We hope you enjoy it!
And without further ado:
So, how about that fickle stock market? You know, that place where the rich get richer and where the rest of us hope our 401(k)’s can eek out a modest gain so we can retire with at least a shred of funds to support our golden years.
This week the place where bulls and bears go to play (I’m still not sure which one represents a good thing or a bad thing since all I can envision is both animals tearing me limb-from-limb) was whiplashed by Apple’s iPhone. On Tuesday, AT&T Mobility, where the iPhone is exclusively available through either the next two weeks or the next 2 millennia depending on which story you believe, said it activated 146,000 iPhones between the device’s launch at 6 p.m. on June 29 and the end of the second quarter 30 hours later. Now I’m no mathematician, but activating 146,000 devices in 30 hours would seem to be a pretty mean feat for most anyone. If my handy-dandy Casio SL-200L is to be believed, and it has not let me down yet, that works out to nearly 5,000 iPhone activations per hour, or about 82 per minute. Smokin’!
Or at least smokin’ to a Wall Street rookie like myself. Apparently, those in control of the rise and fall of the market were not impressed with those numbers, sending Apple’s stock tumbling from $143.70 per share at its close on Monday before AT&T reported results to $134.89 by the end of Tuesday.
Now, that drop is not such a big deal for me as I am too poor to actually own any Apple stock, but for those lucky enough, I’m assuming the dip put a dent in the entertainment funds.
In addition to having its stock price hit the skids, Apple was also hounded by news stories claiming the device’s debut was less than stellar or, even worse, that the launch was average. This from a device that was activated at a rate of 82 per minute despite admitted troubles with the activation process that left many unable to get their iPhones online until Q2 had ended.
But, as is the fickle nature of “the street” (I think that’s the slang term for Wall Street) all seemed almost forgiven just 30 hours later when Apple released its own Q3 results showing that it had shipped 270,000 iPhones to Apple and AT&T Mobility stores ahead of the launch. This, combined with Apple posting a company-record $818 million profit for the fiscal quarter, sent Apple’s stock surging to a 52-week high of $148.50 per share early Thursday.
However, the 270,000 iPhones shipped to stores for the opening weekend appears to conflict with analyst predictions of around 500,000 devices being sold during the opening weekend, never mind the 750,000 devices some went so far as to predict. Sure, Apple could have pumped more iPhones into the supply chain over the opening weekend, and AT&T Mobility could have had a strong surge of activations on Sunday, but as is the case when Wall Street or analysts’ forecasting is concerned, solid numbers are no match for emotion and wild prognostications.
OK! Enough of that. Thanks for checking out this Worst of the Week column. And now, some extras:
–Novatel Wireless, which is one of the biggies in the wireless modem space, reported a deal with Internet Connectivity Group to bring media content to gas stations in the U.S., Canada and Mexico. The deal calls for ICG to use Novatel’s EV-DO Rev. A cards to allow gas stations to eliminate the hard wire needed to change digital advertisement signs at gas pumps. As a Novatel senior VP put it, “ICG required a solution that would turn their unique market challenges into a competitive advantage.” Unique market challenges? Competitive advantage? We are talking about signs on gas pumps here aren’t we? Maybe gas stations are different in Canada or Mexico, but from what I have seen in the U.S., the biggest challenge at gas station pumps is having to figure out the nine-tenths of a cent they tack onto the price of a gallon of gas.
–Forensic computing experts in England reportedly demonstrated the ability to examine a computer’s hard drive using a mobile phone over a wireless connection. The demonstration, which was done at a police convention, included using the mobile phone to take a forensic copy of a computer’s hard drive, performing keyword searches and forensically browsing the computer from a mobile phone 70 miles away. Add this to my growing list of what I want my next cellphone to do.
–Canadian operator Telus Mobility recently added Samsung’s m620 handset to its portfolio. The device has been available from U.S. carrier Sprint Nextel for several months, but, adhering to its hockey heritage, Telus Mobility touted the new device by comparing it with a mullet-business in front, party in the back- which is the hairstyle of choice for many Canadian hockey players. Did I mention that Canada also has the highest ratio of donut stores to people in the world? The Great White North indeed.