Apple's (AAPL) iPhone 4S to Drive Q4 Sub Adds, But Another Story Unfolds...
Tweet
Share
E-mail
Get Alerts AAPL Hot Sheet
Price: $169.02 +1.27%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
EPS Growth %: -0.7%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
EPS Growth %: -0.7%
Join SI Premium – FREE
Apple's (Nasdaq: AAPL) iPhone is to mobile devices what Mike Tyson's punch was in the 1980s: a just-can't-miss hit.
J.P. Morgan released a note Monday highlighting the potential total adds for U.S. wireless carriers in the fourth quarter. The firm believes those with the iPhone 4S stand to do better. According to JPMorgan, Verizon (NYSE: VZ) will get about 1.2 million fresh post-paid subs, higher than its initial forecast of 1.0 million net adds.
AT&T (NYSE: T) will tack-on about 450,000, with Sprint bringing up the rear at 250,000.
Curiously, J.P. Morgan sees Deutsche Telekom's T-Mobile, which has been eye-candy for AT&T over the last nine months or so (and probably much earlier), losing 400,000 subs as a result of being the only U.S. carrier without an iPhone offering.
In terms of subsidies, Verizon is estimated to kick-in $350 per iPhone 4S, AT&T is at $375, and Sprint gives $400 per unit. The numbers are staggering when compared to Google (Nasdaq: GOOG) Android-based phones, which receive about $150 to $200 per unit in subsidies, J.P. Morgan noted.
Looking at the iPhone in terms of total users at each carrier, Verizon should see iPhone users increase from 7 percent in the third quarter to 11 percent in the fourth, as the iPhone accounts for more of Verizon sales (32 percent, from 19 percent last quarter).
AT&T will move it's iPhone user base from 32 percent to 36 percent, with total iPhone sales ripping from 33 percent to 57 percent in the period.
But again, the big number is that T-Mobile one. With the company bleeding post-paid subs, it seems more likely that AT&T is getting the upper-hand in the deal. The question will then remain whether AT&T will pay the same price for nearly one-half million less customers.
J.P. Morgan released a note Monday highlighting the potential total adds for U.S. wireless carriers in the fourth quarter. The firm believes those with the iPhone 4S stand to do better. According to JPMorgan, Verizon (NYSE: VZ) will get about 1.2 million fresh post-paid subs, higher than its initial forecast of 1.0 million net adds.
AT&T (NYSE: T) will tack-on about 450,000, with Sprint bringing up the rear at 250,000.
Curiously, J.P. Morgan sees Deutsche Telekom's T-Mobile, which has been eye-candy for AT&T over the last nine months or so (and probably much earlier), losing 400,000 subs as a result of being the only U.S. carrier without an iPhone offering.
In terms of subsidies, Verizon is estimated to kick-in $350 per iPhone 4S, AT&T is at $375, and Sprint gives $400 per unit. The numbers are staggering when compared to Google (Nasdaq: GOOG) Android-based phones, which receive about $150 to $200 per unit in subsidies, J.P. Morgan noted.
Looking at the iPhone in terms of total users at each carrier, Verizon should see iPhone users increase from 7 percent in the third quarter to 11 percent in the fourth, as the iPhone accounts for more of Verizon sales (32 percent, from 19 percent last quarter).
AT&T will move it's iPhone user base from 32 percent to 36 percent, with total iPhone sales ripping from 33 percent to 57 percent in the period.
But again, the big number is that T-Mobile one. With the company bleeding post-paid subs, it seems more likely that AT&T is getting the upper-hand in the deal. The question will then remain whether AT&T will pay the same price for nearly one-half million less customers.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Biogen (BIIB) tops earnings expectations but revenue falls short
- Verizon readies for 2024 wildfire season
- JPM sees risk of further negative earnings revisions for Tesla (TSLA)
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogRelated Entities
JPMorganSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
