Verizon announced it will begin offing the first CDMA version of an iPhone 4 in early February during a special media event on Tuesday. While that’s good news for U.S. iPhone customers looking for an alternative to AT&T, UBS analyst thinks it’s also a smart move for Apple’s potential sales in other countries, too.
“While a CDMA version of the iPhone at Verizon represents a significant opportunity for Apple to expand its addressable market domestically, the company also opens itself up to opportunities abroad,” Mr. Um said. “We believe it makes sense for Apple to sign additional partnerships with CDMA carriers around the world.”
Both Japan’s KDDI and China Unicom are logical choices for CDMA partners outside the U.S., according to Mr. Um.
Adding a CDMA-based iPhone allows Apple to expand its potential customer base to new carriers. The GSM-based iPhone that Apple has been selling ever since the combination iPod and smartphone was originally launched aren’t compatible with the wireless technology CDMA-based carriers use, cutting off that potential customer base.
Mr. Um is predicting Apple will sell some 67.3 million iPhones in 2011. He added “Apple has set itself up for a solid year of iPhone sales. Today’s agreement with Verizon Wireless should provide additional momentum to already strong iPhone unit growth.”
Mr. Um is maintaining his “Buy” rating and $365 target price for Apple’s stock. Apple is currently trading at $341.41, down 1.05 (-0.31%).
3 Comments
They can’t handle making enough for regular GSM carriers. Mobily, Du, STC, Etisalat and others are complaining from the low stock provided by Apple!
Same thing in China with iPhones. They can’t get enough inventory from Apple.
And yet some twits are saying Apple is only going to sell about 7 million iPhones all year on Verizon. Verizon has a 92 million subscriber base. 10% of that should be easy with close to 15% likely for iPhone purchasers and unlimited data plans. That’s some tempting dangling carrot.
Um, you think?
Frankly, I’m surprised Verizon caved fast enough that they were the first to get the CDMA iPhones. I was sure they’d hit the market elsewhere before Verizon got them.
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