[bigsale]

StarHub delays iPhone sale
It will not bring it in this year


StarHub chief executive Terry Clontz said that Singapore's second largest mobile operator will not be able to bring the Apple iPhone 3G in by the end of the year. -- PHOTO: REUTERS


STARHUB, which had earlier said that it will have the Apple iPhone 3G in stores by end of the year, will not be bringing it in after all.

In a results briefing on Wednesday, StarHub chief executive Terry Clontz said that Singapore's second largest mobile operator will not be able to bring the gadget in this year.

But the telco is continuing 'dialogue with Apple', he said adding, 'At this particular point in time we cannot be specific when we will have it in our stores... they (Apple) have their priorities signing on distributors.'

This leaves SingTel as the sole iPhone distributor here for now. MobileOne had previously said it was in discussions with Apple, but did not commit to a date. The iPhone, said Mr Clontz, has created 'some consternation' for StarHub.

SingTel sold over 20,000 iPhones since its Aug launch, although some estimates put the number at over 60,000.

The 'pent up demand' for it is not unexpected, said Mr Clontz, although 'things seemed to return to normal after three to four weeks.'

But StarHub 'resisted coming to the market with big offers because we believed it (iPhone) would run its course - and it did.'

The company intends to adopt the same defensive strategy this quarter, in light of the economic uncertainties.

Mobiles operators usually sweeten their offers during the festive period.

While Mr Clontz expects that 'there will be some promotional activities in Q4, I believe that all operators, not being able to predict how deep the recession will be, will put the brakes on a bit.'

For the three months to Sept 30, StarHub's profit fell 2.1 per cent to $79.5 million, primarily due to higher content acquisition costs for its pay TV business.

The 'cost of services', which primarily go towards pay TV content like football, was up 21 per cent or $13 million, to $73.1 million. By comparison, pay TV revenues was up a comparatively lower 15 per cent or $12.6 million, to $98.4 million. Slightly lower mobile revenues, down 0.7 per cent to $264.4 million, was also a contributing factor.

Revenue was up 2 per cent to $525 million, and earnings per share was 4.65 cents, down from 4.78 cents the year before. Group net asset value was 6 cents, down from 6.3 cents as at last December. StarHub announced a dividend of 0.045 cents per share, up from 0.04 cents last year.

So far, the company has 'not yet seen any material impact on our business' from the financial crisis, but it is watching the situation closely 'in order to manage expenses and investments', it said.

Despite concerns over the economy, StarHub maintained its earlier forecast of 7 per cent revenue growth and an 18 cent dividend payout for its 2008 financial year ending next March.

StarHub shares rose 7 cents to $2.29 on Wednesday.

Source: http://www.straitstimes.com/Breaking...0.html?vgnmr=1