Monday, April 9, 2012

Analyst says iPhone subsidies can't last, cuts Apple to hold

Apple Inc. photo

Analyst Walter Piecyk cut Apple to hold from buy Monday even though he expects the company to beat analyst expectations when it reports earnings later this month.

While most seem to have been wondering how long it will take Apple Inc.?

Piecyk cut Apple (NASDAQ: AAPL) to hold from buy Monday even though he expects the company to beat analyst expectations when it reports earnings later this month.

The problem, he believes, is that wireless carriers such at AT&T?

"We expect post-paid wireless operators to remain firm in their plan to stunt the pace of phone upgrades in 2012 and we expect to see some initial evidence of their success in the current quarter," he wrote.

That will put pressure on Apple to lower its price on its popular iPhone, he believes, cutting its profit margin on the device.

Piecyk predicts a decline of 4 million between the first and second quarters to just 9 million, with the biggest drop from Apple's biggest customer AT&T (NYSE:T).

Carriers will be working hard to promote smartphones that use the Android operating system from Google Inc.?

While most seem to have been wondering how long it will take Apple Inc.?

Piecyk cut Apple (NASDAQ: AAPL) to hold from buy Monday even though he expects the company to beat analyst expectations when it reports earnings later this month.

The problem, he believes, is that wireless carriers such at AT&T?

"We expect post-paid wireless operators to remain firm in their plan to stunt the pace of phone upgrades in 2012 and we expect to see some initial evidence of their success in the current quarter," he wrote.

That will put pressure on Apple to lower its price on its popular iPhone, he believes, cutting its profit margin on the device.

Piecyk predicts a decline of 4 million between the first and second quarters to just 9 million, with the biggest drop from Apple's biggest customer AT&T (NYSE:T).

Carriers will be working hard to promote smartphones that use the Android operating system from Google Inc.?

Apple stock started Monday down slightly at around $627 after hitting an all-time high of $634.66 Thursday. Apple operates a retail location at ABQ Uptown.


Cromwell Schubarth of the Silicon Valley / San Jose Business Journal, an affiliated publication, compiled this report.

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