Commentary - 06/10/2008

Why Apple and AT&T Are Together

So now we have the news that Apple and AT&T are working closely together promoting the new iPhone:
Finally, Steve Jobs unveils iPhone 2.0 and iPhone 3G LA Times
$199 iPhone? Sure, with a 2-year contract Washington Post
Apple may soon be free from AT&T C/Net News (Don't bet on it!)

The following quote is from the $199 iPhone article above from the Washington Post:

SAN ANTONIO, June 9, 2008 - AT&T Inc. today announced it will be the exclusive U.S. provider of the new iPhone 3G, details of which were outlined earlier today at Apple's Worldwide Developers Conference in San Francisco.
Do you ever wonder how such deals are made? Someone has the gift of salesmanship, right? Maybe. But it also helps to have Major Shareholders in common, those that total less than 1% of all the institutional holders but controlling more than 31% of each company. Sure must make it easier to get an audience, and a deal.

Let's see: Steve Jobs at Apple has 5.5 million shares (0.62%), but Barclays UK alone controls 36.2 million (4.11%), or considered in conjunctions with its other agents it totals 13.73% of Apple. The Top 10 Major Holders, even though the make up 0.8% of the 1184 institutions, control 31.04% of Apple. So who really runs Apple?

Taking a look at AT&T, the Top 10 Major Holders, of almost the same groups, make up 0.7% of the 1389 institutional holders, but control 31.64% of AT&T. And this is just considering the Top 10. If you took a look at all the institutional holders, you would see a lot of inter-connections among the institutions that would make these percentages of control even greater.

Perhaps that's why: Sometimes The Dragon Wins

Symbol Name Of Corporation

Apple Inc. (As of 31-Mar-2008)
Top 10 Institutional HoldersShares2008Value2007
Barclays Global Investors UK Holdings Ltd36,260,7614.11%$5,203,419,203-.--%
FMR LLC (Fidelity)31,092,5763.53%$4,461,784,656-.--%
State Street Corporation28,176,9213.20%$4,043,388,163-.--%
AXA (Paris, France)27,486,6573.12%$3,944,335,279-.--%
Vanguard Group, Inc. (The)26,680,7133.03%$3,828,682,315-.--%
Janus Capital Management, LLC19,412,6692.20%$2,785,718,001-.--%
Price (T.Rowe) Associates Inc12,996,1211.47%$1,864,943,363-.--%
Bank of New York Mellon Corporation12,950,7711.47%$1,858,435,638-.--%
Northern Trust Corporation11,318,0351.28%$1,624,138,022-.--%
Capital Research Global Investors10,408,0001.18%$1,493,548,000-.--%
% of Shares Held by All Insider and 5% Owners:1%-.--%
Top 10 [0.8%] of 1184 Institutional Holders Control24.59%-.--%
Percentage of Barclays and "Associates" Control13.73%-.--%
NOTE: Capital Group manages two funds that control 2.47%.
Vanguard manages three funds that control 2.14%.
Fidelity (FMR) manages two funds that control 1.84%.
Therefore, the TOP 10 Major Holders control 31.04% of Apple.

Symbol Name Of Corporation

AT&T (As of 31-Mar-2008) (As of 30-Jun-2007)
Top 10 Institutional HoldersShares2008Value2007
Barclays Global Investors UK Holdings Ltd263,025,8084.43%$10,073,888,446-.--%
State Street Corporation202,993,6163.42%$7,774,655,492-.--%
Capital World Investors186,838,6943.14%$7,155,921,980-.--%
Vanguard Group, Inc. (The)186,501,8213.14%$7,143,019,744-.--%
Capital Research Global Investors142,100,0402.39%$5,442,431,532-.--%
AXA (Paris, France)130,020,9092.19%$4,979,800,814-.--%
FMR LLC (Fidelity)125,464,7402.11%$4,805,299,542-.--%
Wellington Management Company, LLP100,120,2811.69%$3,834,606,762-.--%
Bank of New York Mellon Corporation81,526,1821.37%$3,122,452,770-.--%
Northern Trust Corporation66,377,2711.12%$2,542,249,479-.--%
% of Shares Held by All Insider and 5% Owners:0%-.--%
Top 10 [0.7%] of 1389 Institutional Holders Control25.00%-.--%
Percentage of Barclays and "Associates" Control10.34%-.--%
NOTE: Capital Group manages four funds that control 4.99%.
Washington Mutual manages a fund that controls 1.37%.
Vanguard manages two funds that control 1.65%.
Therefore, the TOP 10 Major Holders control 31.64%, and
Barclays/Associates control 11.71% of AT&T.
Capital Group controls 10.52%.

2008 by Edward Ulysses Cate
Help Support This Site
Commentary Index: