Apple, Verizon Results: Weekly Tech Recap

NEW YORK ( TheStreet) -- On Friday, Apple ( AAPL) ended another news-dominating week two ways: By announcing that the launch of its white iPhone 4 will be further delayed due to manufacturing glitches, and by taking the first requests for iPhone 4 cases, which allegedly remedy reception problems.

Antennagate had no impact on Apple's third-quarter earnings, which, fueled by strong iPhone and Mac sales, came out well above analysts estimates: Apple posted $3.51 EPS, up from $2.01 in the year-ago period and up from the $3.11 analysts expected. Revenue hit $15.7 billion.

While Apple's results were more than enough to send its shares upward for most of the week before closing Friday up 92 cents to $259.94, Apple still has about $300 million to go before it catches up with rival Microsoft ( MSFT), revenue-wise.

But with the Bill Gates persona long gone from the software giant's aura, Apple's beloved brand -- which TheStreet studied a bit this week -- stands atop tech in a league all its own, fueled by the quirks and moves of its CEO, Steve Jobs.

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In other earnings news, IBM ( IBM) kicked the week off by missing revenue estimates for the second quarter, blaming a currency headwind caused by the strengthening dollar. After a steep drop-off early Tuesday, IBM shares took the slow and steady ride up for the rest of the week, closing up 91 cents to $128.38 Friday.

Squeezing lots of juice out of Windows 7 sales, Microsoft posted substantial quarterly results on Thursday, announcing revenue of $16.04 billion, a 22% increase from the same year-ago period. The company's shares closed down 0.12% to $25.81 on Friday.

Hefty increases in wireless customer subscribers last quarter boosted both AT&T ( T) and Verizon ( VZ) shares late in the week. Verizon, whose stock shot up more than 4% Friday immediately following its earnings report, is seeing lots of upside for its growing list of flashy Android smartphones.

AT&T activated a record 3.2 million iPhones over the past quarter, which helped bump its second-quarter profit by almost 26%. The company also boosted its outlook and expects strong EPS growth for the rest of 2010.

Verizon closed up 3.78% to $28.02 Friday, while AT&T closed up 0.12% to $25.54.

Tech's week ahead

Last week, TheStreet's tech team took a look at 5 IPOs that the tech sector needs now. Tune in Tuesday when we examine another crop of companies buzzing about the IPO radar.

Motorola's ( MOT) Droid smartphones helped Verizon beat the Street's estimates for last quarter; we'll report on whether they do the same for the ancient radio maker when it reports first thing in the morning Thursday.

We'll also be watching British chipmaker ARM Holdings ( ARMH), the Intel ( INTC) rival whose technology dominates much of the smartphone sector.

The company, which reports earnings on Tuesday, has quietly forged partnerships with dozens of big tech names including Texas Instruments ( TXN), Samsung and, most recently, Microsoft. The software maker announced Friday that it had signed an agreement to license ARM's technology, which presumably will be used for some type of mobile device development.

-- Written by James Rogers in New York

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