The Verizon iPhone press conference did nothing to boost Verizon stock. Verizon’s iPhone media event really sent its stock down. The inevitability of the Verizon iPhone within the past week has moved up Apple stock six percent. There is no doubt that people could be applying for a pay day loan to buy the iPhone from Verizon.
Verizon stock not liking the rumor and news
Verizon stock was down 2 percent early Tuesday afternoon following the Verizon iPhone announcement. `The market will reflect the assumption that Apple will benefit while Verizon isn't with the investment. There is the AT&T record it is keeping up with. This is what the iPhone is known for right now. AT&T stock is down 20 percent from Jan. 9, 2007, when it became the exclusive carrier for the iPhone. Everyone wanted Verizon stock, even if it meant getting a loan, in October. This is when the Verizon iPhone rumors started. Verizon shares have risen about 7 percent since then. The "buy the rumor, sell the news" mentality that investors is had is why there is a slump in Verizon shares. This is what the Wall Street Journal explains.
Verizon is being affected by the iPhone
The stock for Verizon is expected to continue dropping. This is why the 2011 earnings for Verizon may be hurt a little bit by the iPhone. Vendors end up getting pressured by Apple for good deals because of how popular the iPhone is. In order to get a lot of customers interested very quickly, the iPhone is being subsidized by Verizon. The Verizon iPhone 4 will sell at a lower price than any other iPhone. The 16-gigabyte model is only $199 with a two-year service agreement while the 32 gigabyte model is only $299 for Verizon customers. An analyst told CNBC that Verizon is shelling out about a $400 dollar subsidy for every iPhone it sells.
Soaring Apple Stock because of the deal
With the Verizon iPhone, Apple has won really. The iPhone market share is what drives Apply stock. Just with rumors of a Verizon iPhone, Apple stock went up 19 percent. That was just the last quarter of 2010 also. When it comes to the global smartphone market, the iPhone had 3 percent in 2010. This is an increase from 2 percent in 2009. The Verizon iPhone could boost Apple’s global smartphone market share to hit 12 percent in the next few years. Even borrowing money to buy Apple stock now is a good debt. The Trefis Team at Forbes estimates that the price of Apple shares could increase another 25 percent from its current market price of about $340.
Information from
CNBC
cnbc.com/id/41022331/
Wall Street Journal
online.wsj.com/article/BT-CO-20110111-710821.html
Forbes
blogs.forbes.com/greatspeculations/2011/01/10/iphone-eats-market-share-pushes-apple-stock-above-470/
Smart Company
smartcompany.com.au/information-technology/20110111-apple-stock-rises-as-rumours-fly-over-ipad-2-verizon-iphone.html
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