Apple (AAPL) Investors Show Nervousness On Speculation T-Mobile Could Be Next iPhone Carrier
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Shares of Apple Inc. (NASDAQ: AAPL) fell sharply in the final minutes of trading today and one analyst has predicted that it will open its iPhone to T-Mobile users in 2010 when its current exclusive contract with AT&T (NYSE: T) expires. It is unclear if the two are related, but it is an interesting coincidence.
According to AppleInsider.com, Doug Reid of Thomas Weisel Partners stated that his firm believes that the T-Mobile, and not the rumored Verizon (NYSE: VZ), will be the initial beneficiary of the mega-popular Apple mobile device when it ends next year.
"AT&T advertising in the United States has in recent weeks clearly shifted away from iPhone as the carrier likely readies itself to lose exclusivity in the United States (to T-Mobile and not to VZ, we believe) while VZ ads promoting Droid and other anti-iPhone devices appear to have intensified markedly," Reid said.
Rumors that sprung up earlier this year that AT&T was attempting to reach an agreement with Apple to extend the exclusive agreement for the iPhone have since cooled down, leading to the speculation that the device will be made available on another carrier in the near future.
The current Apple device would have to be altered to work with T-Mobile 3G network.
With the sell-off, investors could be sending a message that either they don't want Apple to leave the high margin deal with AT&T, or if they do leave they should strike a deal with a carrier with much larger reach.
Apple shares closed the regular session down 1.47 percent to $196.97, but is back up to $197.80 in after-hours action. Shares of AT&T are up 0.85 percent to $27.17 in aftermarket hours.
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