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Technology Stocks : Apple Inc.
AAPL 255.53-1.0%Jan 16 9:30 AM EST

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To: Road Walker who wrote (134758)6/4/2012 3:27:56 PM
From: slacker7113 Recommendations  Read Replies (2) of 213182
 
Apple could be using Leap through its Cricket Wireless brand as a guinea pig carrier to test if American consumers are ready to pay full price for their iPhones, according to BTIG analyst Walter Piecyk. If that’s the case, the implications could be enormous: Apple could shed the mortal coil of the operators and start selling its iconic smartphone directly to consumers

It is nice to know that some things never change....Piecyk is still an idiot.

Apple doesnt want to sell unsubsidized devices. An unsubsidized market would mean that competitors could easily undercut Apple on price instead of having basically all of the high-end models selling for around $199. It would also mean that consumers would upgrade their handsets far less often. The current system makes it a no-brainer to upgrade your handset every two years or so. That upgrade cycle would slow down dramatically if consumers had to pay $650 for their new iPhone.

Leap is just about adding options for consumers. It also provides a nice check on the carriers unilaterally raising iPhone prices without also lowering plan prices.

Slacker
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