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Technology Stocks : Apple Inc.

AAPL 284.15

-0.7%

Dec 3 3:59 PM EST

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To: MGV who wrote (163037)	12/16/2013 7:40:03 PM
From: pyslent	Read Replies (1) of 213173

"The majority of the smartphones Verizon is activating are iPhones. It isn't because of commitments." You may see these as unrelated, but in my opinion, they are not. I see the presumed existence of a volume commitment as one of the motivating factors in the way Verizon prices and markets the iPhone. The price difference between the best phone Verizon sells and the cheapest is $200. "Pocket change," I believe Doren calls it. On TMobile, you can get a decent smartphone for $100, $550 cheaper than the 5S. While TMobile will certainly grow iPhone sales sequentially, they will not come close to the 65% share that Apple will likely post at Verizon in the Dec quarter. Verizon prices the iPhone to sell as many iPhones as possible. TMobile is not playing that game. If I had to guess, I would say that TMobile got away with a much smaller volume commitment with Apple.

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