“RBC Capital Markets analyst Jonathan Allen believes the gadget will prove to be a meaningful catalyst for the stock, accelerating subscriber growth by 150,000 in the first year of launch and consequently contributing to EBITDA. He expects Rogers will get a exclusive deal to offer the iPhone in Canada that may last four years or more, ensuring its competitive advantage and its position as the company that will offer the 3G version,” Jonathan Ratner reports for The Financial Post.
“‘In our opinion, distribution is a key consideration for Apple’s market growth strategy… and Apple would be more comfortable entrusting Rogers, which has the most proprietary stores and subscribers in Canada, with a lengthy deal,’ Mr. Allen told clients,” Ratner reports.
“Apple may agree to a ‘virtually unlimited’ plan with Rogers for $35 a month (excluding voice) with data usage of 100 or 200 megabytes per month, the analyst suggested, adding that this should be more than sufficient. Apple could also insist that an ‘all-in’ voice and data plan include things like free call features. Combined plans such as this, with 250 to 500 anytime minutes and unlimited evenings/weekend calls after 9 p.m., may cost $80 to $100 per month, Mr. Allen suggested,” Ratner reports.
Ratner reports, “As for the price Rogers will charge for the iPhone, he expects it will be around $399 for the 8 gigabyte version, with a three-year contract.”
Full article here.
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