Monday, May 21, 2007

iPhone Debut Will Lead to Cell Phone Upgrade

There is no question that the late June debut of the Apple (AAPL) iPhone will create a lot of stir. Much of the hype is already priced into the stock. Or at least most of the hype will be priced into the stock before the iPhone debuts in about a month. I still think you a can stay long Apple until the release. Apple will have a tough time selling the iPhone. An initial $500 price tag for a 4 GB music phone and a $600 price tag for a 8 GB phone will be too steep for most consumers. Still many iPhones will be sold and I remain bullish on AAPL.

Who Else Will Benefit?

1. Research in Motion (RIMM): Many of the same features of the iPhone can be had for a lower monthly fee and lower upfront cost with a Blackberry. The Blackberry Pearl runs between $59 and $149 depending on the carrier. Plus the data fees are $10 less per month than the iPhone. I believe consumers will upgrade their cell phones this summer and choose RIMM over the iPhone.

2. AT&T (T) will be a winner no matter what happens. AT&T is the exclusive carrier of the iPhone and will gain wireless subscribers. More importantly more consumers will add media bundles to their wireless plans when they upgrade to a "smartphone" in order to use all of its features. This is a homerun for AT&T, as the average revenue per user should increase with more "smartphone" subscribers.

3. Motorola (MOT) is my sleeper pick. Hovering near its 52 week low, I see lots of value MOT. Motorola has the RAZR 2 set to debut in July and the Q9 smartphone also set to debut shortly. The Q9 will put added pricing pressure on the iPhone and Blackberry Curve & Pearl.

One important thing to remember is that these cell phone upgrades come in cycles. I would never "invest" for the long haul in any of the above names. These are simply 6-8 month "trades."

Note: I am long RIMM


Anonymous Anonymous said...

Apple has been doing pretty well selling the iPhone. 4M units in 200 days, not bad. With the upcoming SDK and the debut of iPhone apps I think its going to the moon.

1/19/2008 11:43 PM  
Blogger marry said...

Blogs are so informative where we get lots of information on any topic. Nice job keep it up!!

Buy Dissertation

4/14/2010 11:50 PM  
Blogger jennifer said...

very nice buddy i really like your post :) such a nice and lovely
Buy Dissertations

11/03/2011 2:11 AM  
Blogger cheapuggs said...

Cheap UGG She closed the door, could not help saying: "how can you ask your sister should not have to accept that the pursuit of her sister boyfriend? Why do not you ask your sister, the sister of the skin should peel coat to do?"

cheapest uggs ever Yinbai lowered eyes, long eyelashes like butterfly wings like a shock, such as considering a long time, and then said: "Well, then less moment, and then also you can not not." yt21fdg

cheap uggs for women Yes, a picture is worth one thousand words.

where to purchase uggs online Is it because earn a little money? Yinbai instinctively started smiling.

1/16/2012 7:24 PM  
Blogger cheapuggs said...

Discount UGG Boots She sat down gently to his side, he saw her, her smile.

cheap uggs australia Yinbai plan to contact the cousin said it again. yt21fdg

ugg kenly black Photo wonders, Yin printed by the more than a dozen quickly, easily Miaohong send a few home Yinbai indicated in the photos one by one: from right Yinbai Miaohong Taiwan Green, tracing the letter attached, thrown into the mailbox.

very cheap ugg boots Yinbai brought back memories, she remembers very clearly, in the sixth grade year, his father often of late, his mother became restless, and no one care about her homework, followed by, a woman called to Shen, the Yingsheng cracking cracking to find Shen Mo, his father one, immediately change clothes to go out ... ... Century wooden later summoned from London, Mr. Shen opened the door, see that he, rather ironic question: are you looking for? "

1/16/2012 7:25 PM  

Post a Comment

<< Home