13 Nov '11, 9pm

Strong sales of iPhone 4S could dent profits for telcos in short-term

SINGAPORE - The recent launch of the iPhone 4S has kept the lines busy at telecom shops. While it might seem good business for them, increasing subsidies that reduce the cost of handsets for consumers - in exchange for a lock-in contract with the provider - can eat into profit margins. "We might expect a little bit more pressure in the next couple of months of this year. The iPhone 4S is being received very well in Singapore. It's selling quite actively," said StarHub CEO Neil Montefiore. The higher expenses could mean a further dent in the telco sector's next set of quarterly earnings, which had disappointed in the most recent quarter. For the three months ending September, all three telcos missed the earnings estimates by analysts. For the three months to September, SingTel's net profit fell 1.2 per cent from a year earlier to S$889 million, below the S$900 million forec...

Full article: http://www.todayonline.com/Business/EDC111114-0000028/Str...

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