France Telecom CEO Says Pushing Apple's (AAPL) iPhone is Getting 'Harder and Harder'
Tweet
Share
E-mail
Get Alerts AAPL Hot Sheet
Price: $314.96 -0.74%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Join SI Premium – FREE
Will continued economic pressure in Europe potentially affect sales of higher-end mobile devices like Apple's (Nasdaq: AAPL) iPhone and Samsung's new Galaxy S IV?
Possibly, according to France Telecom (NYSE: FTE) CEO Stephane Richard.
Richard states that the consumer is becoming more frugal than ever. In Europe, he notes that consumers seem to be keeping older handsets when they switch carriers and France Telecom in general has seen prices drop dramatically over the last few years. Richard noted that its cheapest plan -- which offers unlimited calls and texts, with up to 3-GB of data -- goes for about €20 per month (roughly $26). That's a bargain when compared to most mobile plans in the U.S., which offer limited texting and 1-GB less data. More discounting for France Telecom of 10 percent to 12 percent is expected this year, following a 10 percent cut last year.
Richard continued that the next launch of Apple's iPhone might not be as frenzied as in the past, which has see long lines and many waiting overnight to be the first to get the device. He said that selling a $600 handset is becoming more and more difficult.
Comments from other mobile telecom executives weren't available and Richard's comments might just be a company-specific observation.
Shares of Apple are up into the open Thursday.
Possibly, according to France Telecom (NYSE: FTE) CEO Stephane Richard.
Richard states that the consumer is becoming more frugal than ever. In Europe, he notes that consumers seem to be keeping older handsets when they switch carriers and France Telecom in general has seen prices drop dramatically over the last few years. Richard noted that its cheapest plan -- which offers unlimited calls and texts, with up to 3-GB of data -- goes for about €20 per month (roughly $26). That's a bargain when compared to most mobile plans in the U.S., which offer limited texting and 1-GB less data. More discounting for France Telecom of 10 percent to 12 percent is expected this year, following a 10 percent cut last year.
Richard continued that the next launch of Apple's iPhone might not be as frenzied as in the past, which has see long lines and many waiting overnight to be the first to get the device. He said that selling a $600 handset is becoming more and more difficult.
Comments from other mobile telecom executives weren't available and Richard's comments might just be a company-specific observation.
Shares of Apple are up into the open Thursday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Monness, Crespi, Hardt on Apple (AAPL): 'Looking for 16% Growth'
- Wrap Technologies outlines platform shift toward AI-driven public safety
- KeyBanc Downgrades Apple (AAPL) to Underweight
Create E-mail Alert Related Categories
Insiders' Blog, Management CommentsSign 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!
