Analyst Says T-Mobile Deal Means Big Business for Apple
On Wednesday, Sterne Agee's resident Apple watcher, analyst Shaw Wu, told investors that Apple will see no shortage of benefits from T-Mobile's introduction of the iPhone 5.
On Tuesday, the nation's fourth largest carrier confirmed that it would begin covering the popular Apple touchscreen smartphone on April 12. Wu believes Apple could pick up plenty of new loyalists through the carrier’s 42 million subscribers (after T-Mobile’s pending acquisition of MetroPCS).
Apple already has access to 116 million Verizon Wireless subscribers, 107 million AT&T subscribers, and 55 million Sprint subscribers.
“While T-Mobile USA has lost customers, its core customer base remains loyal to its lower-cost and unlimited data plans,” Wu says. “We believe this will help AAPL capture incremental customers and strengthen its position against GOOG Android, which got its start on T-Mobile USA.”
WU's firm is keeping a Buy rating ON AAPL with a price target of $630.
Source: Street Insider