Talks Over iPhone Plans Heat Up Among Analysts (AAPL)
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Rating Summary:
45 Buy, 28 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Rumors of Apple (Nasdaq: AAPL) coming out with new phones in September or cutting the price on its iPhone 3G and iPhone 4 have been abundant around the Street recently.
Deutsche Bank got the ball rolling on Friday, June 24th after suggesting Apple may release a new phone called the iPhone 4S, designed for the pre-paid market. The firm also noted the inevitable release of the iPhone 5.
BMO capital responded Monday in its own report, arguing Apple will only release one phone in September. BMO believes a "4S" version would just be a cheaper model -- not a simpler or updated one.
This morning, RBC Capital questioned why not a free iPhone...? The firm also agrees Apple will release only one new phone in September and that the new model will drive down the prices on the older ones. RBC expects Apple to cut the price of the new model to $99 with a two-year contract, potentially pushing the iPhone 3G price down to zero with a two-year contract. Consumers can currently purchase an iPhone for $49 with a two-year contract with AT&T (NYSE: T).
RBC Capital believes offering a free iPhone could generate around $7 billion in additional revenue and $1.85 in EPS for Apple. This calculation even assumes 10 percent cannibalization.
The firm expects a new iPhone model to be implemented into the pre-paid market, but not likely until 2012.
Deutsche Bank got the ball rolling on Friday, June 24th after suggesting Apple may release a new phone called the iPhone 4S, designed for the pre-paid market. The firm also noted the inevitable release of the iPhone 5.
BMO capital responded Monday in its own report, arguing Apple will only release one phone in September. BMO believes a "4S" version would just be a cheaper model -- not a simpler or updated one.
This morning, RBC Capital questioned why not a free iPhone...? The firm also agrees Apple will release only one new phone in September and that the new model will drive down the prices on the older ones. RBC expects Apple to cut the price of the new model to $99 with a two-year contract, potentially pushing the iPhone 3G price down to zero with a two-year contract. Consumers can currently purchase an iPhone for $49 with a two-year contract with AT&T (NYSE: T).
RBC Capital believes offering a free iPhone could generate around $7 billion in additional revenue and $1.85 in EPS for Apple. This calculation even assumes 10 percent cannibalization.
The firm expects a new iPhone model to be implemented into the pre-paid market, but not likely until 2012.
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