According to the Wall Street Journal there will be a next generation CDMAiPhone that can run on the Verizon and T-Mobile networks! Wow! Apparently the exclusive deal between Apple and AT&T is coming to, or has already come to an end.
Apple stock (AAPL) is up nearly $5 or 2% in the premarket, and Verizon (VZ) is up over a dollar or more than 3.5%. The converse to this deal is AT&T (T) which is down by about 1.5%.
The big question is, will AT&T experience an exodus of customers flocking to Verizon? Another very good question that I have is, will this competition lower our data plans? Because we’re getting raped, gouged, dragged through the mud. And the final questions are, what is the realistic market grab for Apple and what does this mean for Research in Motion’s (RIMM) Crackberry?
Here’s my take…
Short RIMM and T, go long AAPL and VZ. It’s lights out for RIM, they simply won’t be able to hold ground against the Apple tsunami, as Apple, in my humble opinion, will grab 50% of RIM’s business by the end of 2011. Oh, and long Qualcomm (QCOM) the CDMA patent holders.
One more question with regard to the iPad. Normally we would expect a drop in Apple stock price once the iPad is put on the store shelves, especially considering the shortages that are rumored. Will this Verizon announce negate that trade?
Tagged as: AT&T, iPad, Qualcomm, Rim, Verizon
