BMO Capital’s Keith Bachman late yesterday raised his price target on Apple (AAPL) shares by five bucks to $460 after raising his estimates for Apple’s iPhone sales based on what appears to be strong uptake at Sprint-Nextel (S) and Japan’s KDDI.
Bachman now sees perhaps 29.5 million iPhone units, up from his prior 28-million estimate, with potential for as many as 32 million, writing “based on our conversations with Sprint sales reps, we believe that Apple is benefiting from material upgrades of Sprint subscribers.”
I’d note that numerous analysts have been raising their iPhone estimates for the last couple of months, and 30 million appears to be the average estimate of late.
Bachman raised his EPS estimate for this quarter ending in December, Apple’s fiscal Q1, to $9.82 from $9.55 a share, and raised his estimate for the full fiscal year from $33.50 to $34.68. Bachman also raised his full-year fiscal 2013 estimate to $39.62 from $38.80.
Just admit the fact that sprint made an excellent decision to incorporate the iPhone in their lineup .... And move on. No one believes your continued futile attempts to argue this point.
It is quite apparent to all, that things have not gone quite the way shortzzzzzzz had hoped for the last 6 weeks. In fact, quite the contrary:
- Very strong iPhone sales
- 4 Bln debt issuance (in a matter of a few days)
- Clearwire deal done
- all debt maturities for 2012 paid up
- T - tmob deal squashed
Try to argue these points till your fingertips bleed. It will do no good
We all know better.
Hezzze handzzzz shortzzzzz headzzzzz to them in 2012
Sprint will lose money on the iPhone (directly)...the iPhone deal, in and of itself, will cost S money.
However, the deal will allow S to make money overall in that it "enables" S to utilize the phone as a vehicle to deliver subscriptions / help stop churn etc.
If you are in any business you have to buy / lease "vehicles" to deliver your product(s) / services...FedEx has to buy (vehicles) trucks..cab drivers have to buy (vehicles) cabs...communications cos have to buy (vehicles) equipment.
You can say...Android phones are actually ( because of their growth and price points) , in fact, subsidizing iPhones under the Sprint umbrella.
Wrong. They kept all of your business (for two YEARS) at what, about 225 a month (?) or more by simply subsidizing one phone. Smart move for sprint. Dumb move for jugzzzzzzzzzz.
I upgraded my Blackberry to an Iphone on my family plan...I got the iphone 4S...
Sprint gets 15% discount for committing to the gazzillion phones they must buy...They will pay $600 for the phone to Apple...I gave Sprint $200 for the phone...My monthly bill for this phone is $30 because it's a 4th phone in my family plan...I will pay Sprint $720 over 2 years minus the $400 that Sprint ate leaves Sprint getting $320 over 2 years... That's a little over $13 a month...Sprint gets $27 a month on average for Prepaid phones with customers paying 100% of the phone...
I would have kept my Blackberry and used 1/10 the data for $30 a month....
They lost money on my upgrade
They lost money on every upgrade..
Your only argument is CHURN?? A company can't expect to survive long with an exodus of customers..That had to be slowed..It has, at a cost of billions...
Now you can hoot and holla at quarterly report about how you gained 2 million new post paid customers while reporting a $2B quarterly loss...Congrats on iphone...