NEW YORK ( TheStreet) - Although Verizon's (VZ) stronger-than-expected third quarter earnings proved some telecom sector skeptics wrong on the impact of Apple's (AAPL) iPhone 5 to profits, some analysts are still bracing for the smartphone to cut into earnings by year-end.
In reacting to Verizon's third quarter, which was bolstered by higher-than-expected wireless margins and subscriber additions, Shing Yin of Guggenheim Securities highlights that competitor AT&T (T) is likely to see a greater iPhone 5 earnings hit this quarter. The analyst also suspects carriers will face margin pressures headed into 2013 as the iPhone 5 goes global.
According to a Friday analysis by Yin, AT&T is still poised to show large iPhone 5 subsidy payments to Apple in its third-quarter results, due on Wednesday, which could hit margins. That's because Yin estimates AT&T took more iPhone 5 handsets for delivery in the quarter than Verizon, and its customers are nearly twice as likely to be due for a subsidized smartphone upgrade.
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