Also on Tuesday, Intel posted record quarterly revenue and profit; the chipmaker nixed talk of weakness in the PC market on its conference call with analysts. Investors responded positively to the numbers, initially pushing Intel's stock up $1.20, or 6.04%, to $21.06 in extended trading. Intel attributed its strong performance largely to robust enterprise demand, with the company's data center revenue climbing 32% compared to the prior year. The chipmaker's PC Client Group also registered a 17% year-over-year increase in sales. Intel CEO Paul Otellini said that Intel chip-powered smartphones and tablets -- those running Nokia's ( NOK) Meego, Microsoft ( MSFT) Windows Phone 7 and Google's ( GOOG) Android -- should surface sometime within the next 12 months. Intel shares ended the week up 0.23%.
Also on Tuesday, Yahoo! ( YHOO) posted a drop in first-quarter earnings and sales, as the embattled Internet giant narrowly beat Wall Street's estimates. Yahoo!'s search revenue, excluding traffic and acquisition costs, fell 19% to $357 million. The company's display business, an area where it faces stiff competition from Google and Facebook, grew 10% to $471 million excluding traffic and acquisition costs, in line with analyst expectations. The company's shares closed down 0.12% on Thursday.
The week's tech highlight hit Thursday, when Apple ( AAPL), as expected, reported stellar second-quarter numbers. The company killed it with iPhones, shipping 18.6 million during the quarter, a massive 113% hike on the prior year's quarter. iPhone sales accounted for half of the firm's total revenue of $24.7 billion. The surpriser was iPad sales, which came in below analysts' expectations. Apple shipped 4.7 million iPads, compared to the 6.5 million predicted by Goldman Sachs and Canaccord Genuity. Apple said the iPad problem is one of supply -- not demand. Speaking on the company's conference call after market close Wednesday, CFO Peter Oppenheimer said Apple sold every iPad 2 it made during the quarter, and would have liked to end the period with more channel inventory. Apple's stock closed the week up 2.42%.
A big part in the iPhone success story last quarter was Verizon ( VZ), who reported Thursday that it activated about 2.2 million iPhones during its first quarter of selling them. The nation's largest wireless carrier met Wall Street's first-quarter estimates, announcing that it added 906,000 net new wireless subscribers. Verizon posted earnings of 51 cents a share, up from 48 cents in the year-ago quarter and in line with analysts' expectations, according to Yahoo! Finance. Sales for the first quarter were $26.99 billion, just slightly better than the $26.91 billion revenue level a year ago, and also in line with street expectations. Investors, however, were underwhelmed and Verizon's stock ended the week down 2.33%.
Rival AT&T ( T) posted first-quarter results Wednesday, noting that wireless contract subscriber growth dropped 88% from year-ago levels, likely due to its loss of iPhone exclusivity. Ma Bell said it added a net 62,000 post-paid wireless customers in the first quarter, compared to the 512,000 subscribers it added a year ago. Overall, AT&T said it added a total of 2 million new wireless customers in the first quarter, a number that includes 1.3 million so-called connected devices like Amazon ( AMZN) Kindles and MiFi hot spot boxes. AT&T shares ended the week up 1.83%.
Tech's Week Ahead Earnings season continues next week, with results from Emulex ( EMLX) Monday, Broadcom ( BRCM) Tuesday, and Akamai ( AKAM) and Fortinet ( FTNT) on Wednesday. Microsoft ( MSFT) and Motorola ( MMI) -- both firms -- are on deck for Thursday. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org.