While I worry about buying gadgets there are plenty of people out there worried about buying far more important things like food and gas, which means that TV offerings such as those from AT&T, Comcast and Verizon might see the effects of the struggling economy. Daniel Amir, a director and semiconductor analyst at Lazard Capital Markets, seems to think so. In a note on IPTV chip maker Sigma Designs, he maintained a hold on the stock, citing a European slowdown in IPTV growth and fears that AT&T’s IPTV deployments will slow.
From the note:
However, we are increasingly concerned by the possibility of AT&T missing its annual projection of 1M subs, and believe that unit expectations will need to be reduced further in light of the macroeconomic environment. We believe it is more likely that AT&T will reach 30K subs per week by year-end, rather than 40K.
So far AT&T has signed up 549,000 U-verse subscribers, and we’ll get the latest update on Oct. 22 when it reports its earnings. I wouldn’t be surprised if subscriptions did slow, given how quickly DSL subscriptions and even land lines have fallen. It’s a lot harder to convince a customer to switch over to a service when you no longer have a toehold in their home.