To: Moonray who wrote (164541 ) 1/21/2014 3:38:57 PM From: MGV Respond to More on VZ from Barrons (see Moon post below for link)Cantor Fitzgerald ’s Brian White , who has a Buy rating on Apple, and a $777 price target, also notes what appears to be a sub-seasonal trend in smartphone activations:Verizon highlighted smartphone activations of 8.8 million in 4Q:13 compared to 7.6 million in 3Q:13, which equates to approximately 16% QoQ growth. This performance compares to average December quarter sequential smartphone activation growth of approximately 41% QoQ over the past two years. In 3Q:13, Apple’s iPhone represented 51% of smartphone activations at Verizon and historically the carrier has provided commentary around iPhone units (either directly or indirectly); however, we did not hear any comments around the iPhone on today’s call. Over the past 10 quarters, Verizon has accounted for approximately 11% of Apple’s total quarterly iPhone unit sales. iPad from strong tablet results that Verizon noted:Regarding tablets, Verizon sounded very pleased with demand in this category and indicated 4Q:13 was “our best quarter of tablet activations since they were first introduced in late 2010.” Verizon activated approximately 790,000 post-paid tablets in 4Q:13 and approximately 42% of the 1.9 million total post-paid tablets activated in 2013. This 4Q:13 percentage is much higher than we are modeling for Apple’s iPad as a percentage of our 2013 forecast. Given Apple’s leading market share in the tablet category and strong new iPad portfolio, we believe this could indicate potential upside to our iPad forecast for the December quarter.
