Verizon shines up Apple

Never underestimate the power of iPhone.

Wall Street is rethinking its expectations for Apple after Verizon Wireless, the largest US carrier, surprised industry watchers with better-than-expected iPhone sales yesterday.

Verizon sold 3.9 million iPhones in the latest quarter, a 44 percent jump from a year ago — and a strong indicator that Apple is doing better on the smartphone sales front than analysts had forecast.

The results sent several analysts scrambling to revise their predictions for Apple, which will report results for the three months ended June next week.

Getty Images

Verizon's smartphone sales report is encouraging news for Apple's Tim Cook (above) as iPhone results blew past Wall Street estimates.

The June iPhone forecast for sales of 24 million "now looks increasingly conservative," Barclays analysts wrote in a report yesterday.

Barclays was joined by Topeka Capital Markets, which issued a similar note to clients, suggesting Verizon's numbers bode well for Apple.

More than two dozen carriers around the world sell the iPhone, but Verizon is a particularly big one. Typically, it accounts for about 10 percent of global iPhone sales.

The consensus on Wall Street was that Apple sold around 26 million iPhones in the quarter, but Verizon's results suggest the figure is closer to 30 million.

While Apple sold 37 million iPhones in the first quarter, the Cupertino, Calif., company has felt increasing competition from Samsung.

Moreover, Apple is expected to announce a new iPhone in the fall, an event that typically lowers demand for the latest model as consumers wait for the newer one to upgrade.

Yesterday, Verizon said the iPhone accounted for more than half of its 7.5 million smartphone activations in the second quarter.

The strong iPhone sales may be the result of pressure the company feels to sell the device because of purchase commitments to Apple.

To meet its commitment, Verizon must sell $23.5 billion worth of iPhones this year, double last year's figure, according to one analyst.

"Verizon may be pushing harder to fulfill commitments to Apple," said analyst Colin Gillis of BGC Partners.

Yesterday, Nokia also released results, revealing another smartphone surprise: Windows phones are now a viable third player after the iPhone and Google's Android phones.

That is sure to rankle BlackBerry, which is clinging to its distant third place position while trying to stave off irrelevancy.

Finnish player Nokia sold 7.4 million Lumia Windows smartphones last quarter.

For the first time, Windows phones took more of the market than BlackBerry phones, prompting some to say Microsoft is securing its hold on third place in mobile platforms.

"Microsoft continues to invest in the ecosystem around Windows phones and they are slowly gaining traction," said Gartner analyst David Cearley. "We think Windows phones will be in the top three."

gsloane@nypost.com

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Sightings . . .

Lee Radziwill getting off an Air France flight at JFK in a wheelchair with "several underlings in tow," while Julia Restoin Roitfeld was seen at immigration . . . ASHTON Kutcher and Mila Kunis at Joe's Stone Crab in Chicago before a screening of "Jobs" . . . METS great Dwight Gooden and taxi tycoon Andrew Murstein in on-the-field seats at the All-Star Game . . . BRUCE Ratner and developer Ed Blumenfeld at Chef's Corner in Mineola, discussing him joining Ratner's group to renovate and operate the Nassau Coliseum.

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Lee Radziwill

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A Lhota support

Joe Lhota is the next mayoral candidate to hit the Hamptons to shake the hands, and pockets, of its influential residents. The City Hall hopeful will be feted at the house of Michael B. Mukasey, former US attorney general under President George W. Bush. We're told Mukasey and his wife, Susan, "are enthusiastic supporters of Joe Lhota's candidacy for mayor and are hosting a brunch for him at their house in the Hamptons next week." Lhota rivals last week headed out east to drum up support with John Catsimatidis speaking at the Southampton house of Richard Farley and Chele Chiavacci, while Christine Quinn attended a fund-raising dinner at the Sagaponack home of Jonathan Sheffer.

Joe Lhota

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Student loan relief

Students can look forward to lower interest rates on federal loans this fall. Capitol Hill sources say a vote to reduce the rate for undergraduates to 3.85 percent from 6.8 percent will take place next week, after a bipartisan group of senators reached a tentative deal.

Federal student loan debt has surpassed $1 trillion.

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Broadway stars

Shirley MacLaine had one quibble with Tony-winning "Vanya and Sonia and Masha and Spike" — the show has no aliens. Spies said after the "Downton Abbey" star, who claims to have seen UFOs from her New Mexico porch, saw the family drama, "she rushed backstage" to tell the cast she loved the show but "had one complaint," a spy said. "She inexplicably told them she 'really thought [playwright] Christopher Durang was going to delve into the existence of UFOs' " in one of David Hyde Pierce's speeches. "She said, 'Nobody's talking about the facts. People know the truth but it's being kept under wraps. They can't keep it secret forever.' " Our spy chuckled, "Just your typical backstage close encounter."

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Shirley MacLaine

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Subway’s boss has leukemia

Subway sandwich chain confirmed yesterday that its president and founder, Fred DeLuca, has leukemia.

"We can confirm that Subway Restaurants President and Co-founder Fred DeLuca has been diagnosed with leukemia and is currently being treated," a company spokesman said.

"Fred is doing well and focused on his health right now. The senior management team for the brand continues to manage the day-to-day operations of the company and no significant changes are being made at this time."

However, a source said the situation is "very serious" and has raised questions about the future of the sandwich chain, which has no clear succession plan.

FRED DELUCA
Currently being treated

The Post previously reported that Subway has been eliminating development agents to boost profits and streamline its structure — a sign that DeLuca may be dressing up the company for a sale.

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CBS Outdoor sold abroad

CBS Corp. has agreed to sell its overseas outdoor ad business to Tom Gores' Platinum Equity for $225 million.

CBS will retain its US and Canada billboard operations and convert them into a Real Estate Investment Trust, a tool for lowering taxes.

CBS chief Les Moonves said the deal will allow the company to focus on its core content business. The proceeds from the overseas sale will be used to repurchase shares.

catkinson@nypost.com

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A fine time to forget

For a financial whiz, Paolo Pellegrini sure has a fuzzy memory.

Pellegrini, who helped hedge-fund manager John Paulson make billions off the housing market collapse, couldn't remember what CDO, or collateralized debt obligation, stood for during his testimony yesterday in the trial of ex-Goldman Sachs banker Fabrice Tourre.

"I'm not sure," Pellegrini said after a long, uncomfortable pause in the packed Manhattan federal courtroom.

"It may stand for collateralized debt obligation, but I'm not sure," he said in response to a question from Matthew Martens, who is leading the Securities and Exchange Commission's case against Tourre.

In the world of high finance, Pelligrini's memory lapse — however arcane for the nine-member jury — is the equivalent of fictional slugger Roy Hobbs being unable to recall the name of his legendary bat, "Wonderboy."

CDOs were Pellegrini's bread-and-butter during the financial crisis four years ago. As John Paulson's former right-hand man before he left to start his own fund, Pellegrini helped engineer a massive bet against subprime mortgages that allowed Paulson & Co. to pocket $3.5 billion.

The SEC claims Tourre and his former employer Goldman Sachs lied to investors about the role Paulson & Co. played in a complex mortgage security, called Abacus. Paulson handpicked the assets for Abacus, betting they would fail.

Pelligrini — wearing a dark gray, chalk-stripe suit, white shirt and dark tie — responded to questions in a halting, methodical fashion, giving the SEC attorney fits.

"You are speaking in a very imprecise way so I'm having trouble answering your questions," Pellegrini said to Martens at one point.

That exchange came after Martens asked Judge Katherine Forrest if he could treat Pellegrini as a hostile witness. She denied the request but said she might allow it later.

Day two of the high-profile trial saw Dwight Jaffe, a real-estate expert witness, wrap up his testimony, which was laden with esoteric investment terms that the jury seemed to have trouble following.

Jury No. 4 appeared to fall asleep with terms like OWIC and BWIC tossed around during testimony from another Paulson & Co. official, Sihan Shu.

Shu testified in a thick accent that caused the courtroom stenographer to repeatedly interrupt his testimony in order to accurately record it.

mark.decambre@nypost.com

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Barclays energy fine

Barclays and four of its former traders were ordered to pay a combined $487.9 million in fines and penalties by the Federal Energy Regulatory Commission, which had been investigating the company and the individuals for manipulation of US energy markets. The agency directed the company and the traders to pay within 30 days, according to an 86-page order issued yesterday.

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Fisher Bros. take a stake

Lois Weiss

BETWEEN THE BRICKS

A half-stake in two Midtown office buildings developed and controlled by the Fisher Bros. is in a hard contract to Rockpoint for roughly $550 million in cash but will recapitalize the properties at $2.1 billion as Rockpoint will also take on over $1 billion in debt, equating the price to $650 per foot.

Two cancer research centers created by the late billionaire shipping magnate Daniel Ludwig will be the beneficiaries of the sale by National Bulk Carriers.

Ludwig invested with the Fishers when they developed the towers at 1345 Avenue of the Americas and 605 Third Ave. Under the terms of his estate, in 2006 Ludwig's foundation set up the cancer centers and gave them the proceeds from the buildings.

The 49.5 percent interests offered through Douglas Harmon, Adam Spies and Joshua King at Eastdil Secured attracted worldwide interest, sources said.

Rockpoint, however, has a good relationship with the Fishers, having been partners with them at both Park Avenue Plaza, in a deal that was in part orchestrated by Harmon and Spies, and in 299 Park Ave.

The 1.9 million square feet in the 1345 tower also includes the Ziegfeld Theater. The 1.1 million square-foot 605 Third takes up the eastern blockfront between 39th and 40th streets and comes with a six-story, 705-car garage on the far eastern end of the lot separated from the tower by Tunnel Exit Street.

This garage is actually a development site and we hear the Fishers will end up increasing their equity interest in the site and redeveloping it with a residential tower of around 250,000 square feet — purposely designed to be slender and not obstruct the views from 605.

As we've told you in the past and as colleague Steve Cuozzo advised you yesterday, its largest tenant, Neuberger Berman, has a lease up in 2017 and has been out scouting for 300,000 square feet.

Having compatible partners is also desirable as capital calls, maintenance, upgrades and other tenant issues need to be addressed on an ongoing basis.

This year Harmon and Spies recapitalized The Post's headquarters at 1211 Avenue of the Americas for $1.75 billion and Worldwide Plaza at $1.35 billion; sold the Sony building for $1.12 billion; and are completing the sale of the Time Warner office condo at the Time Warner Center to Related Cos. for over $1.3 billion and the sale of 650 Madison for $1.29 billion to Crown Acquisitions and Highgate Holdings. The team previously sold 111 Eighth for $1.77 billion.

None of the parties returned e-mails or calls for comment.

***

Edward J. Minskoff has another school being reeled in for the base of his new — but so far tenantless — 51 Astor Place development.

We hear that St. John's University is working out a lease for the base of 51 Astor, where an earlier school deal for the second floor of 42,000 square feet died.

The building needs to rent about 50,000 square feet to a school to fulfill zoning requirements, and we hear the St. John's lease would be for a couple of the base floors.

But sources said the cost for the Fumihiko Maki-designed space is roughly $90 a square foot, and is not sitting well with some of the school insiders, who have been mortified by financial scandals that rocked the school over the last year and feel the high tab is not in keeping with its Catholic roots.

Peter Riguardi, Paul Glickman, Mitchell Konsker and Cynthia Wasserberger of Jones Lang LaSalle are representing Minskoff, which a year ago had asking rents of $88 to $115 per square foot.

No one from JLL could be reached for comment.

The school could work out a purchase and lease agreement that could allow it not to pay real estate taxes, similar to what CUNY and other nonprofits have devised.

Minskoff advised, "There is no deal." Stay tuned.

St. John's is selling its TriBeCa location at 101 Murray St. through Cushman & Wakefield for $223 million to Steve Witkoff, Howard Lorber and the Fisher Bros. for a ritzy residential tower.

Lois@BetweentheBricks.com

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