The Dow Jones Industrial Average is down 67 points, or 0.5%, as of 2 p.m. EST. Among the heavier downdrafts, Verizon Communications is down 2.2% and AT&T lost 1.5%. What's going on with America's largest telecoms today?

At the heart of the matter, AT&T just released smartphone sales numbers for the holiday quarter. The announcement was heavy on cheerful spin and short on good news: Unit sales increased a paltry 6% year over year, landing just north of 10 million handsets.

Ma Bell rightly calls it a "record" quarter but never acknowledges that the days of double-digit hypergrowth are over. It looks like the low-hanging fruit has been harvested, which is bad news for margins and sales growth across the industry. The news spilled over into an industrywide rout that took all the momentum out of a recent rally:


T data by YCharts.

AT&T also noted record sales of Apple iPhones and Android handsets but didn't provide hard sales numbers for either category. Apple traded sideways today, easily beating the Dow. And that doesn't make much sense in the light of AT&T's disclosure.

The most rosy-cheeked interpretation I can come up with would be that minor smartphone players Research In Motion and Nokia crashed so hard that Apple and the Android army actually delivered halfway decent numbers. Even then, that doesn't help the most hard-suffering half of the handset industry. It might be time to look for the next, next big thing in mobile computing.

Nokia's been struggling in a world of Apple and Android smartphone dominance. However, the company has banked its future on its next generation of Windows smartphones. Motley Fool analyst Charly Travers has created a new premium report that digs into both the opportunities and risks facing Nokia to help investors decide whether the company is a buy or sell. To get started, simply click here now.

The article What's Wrong With the Dow's Telecoms Today? originally appeared on Fool.com.

Fool contributor Anders Bylund holds no position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Goal Setting

Want to succeed? Then you need goals!

View Course »

Introduction to Economic Indicators

Measure the performance of the economy.

View Course »

Add a Comment

*0 / 3000 Character Maximum