“The Apple iPhone is going to Verizon Wireless?” Bob Faulkner, Managing Director of Cranbury Capital, asks for Minyanville. “While rumors of this event hit the market fairly regularly, Bloomberg (yesterday’s source) sounds convinced they’ve got the right people talking. I found two interesting aspects to the article.”
“In the midst of a market sell-off yesterday, when this ‘rumor’ hit the wires it managed to push Verizon’s stock into the black for a most of the last hour,” Faulkner writes. “So ask yourself this: Just how frequently does the expectation of an Android phone push a carrier’s stock up? Let’s see if the new Droid from Motorola has people lined up at the Verizon Wireless stores.”
MacDailyNews Take: Droid does not require crowd control.
Faulkner continues, “Look at it from a different perspective: How many advertisements have you seen/heard in which the company has added, ‘download our iPhone app’ at the end? Now how many have you heard suggesting you download their Android app? My point is simple: Investors and advertisers appear to view iPhone as the de facto standard. That may change, but it’s what the markets are telling you now.”
“The second issue relative to the Bloomberg article is timing, and it’s why I believe this one (rumor) may in fact be true. What if the device in question isn’t going to be a CDMA phone for the existing Verizon Wireless network but an LTE (Long Term Evolution) device?” Faulkner writes. “Apple doesn’t have a history of moving backwards, and developing a CDMA phone would be just such a move… Verizon Wireless expects to introduce LTE service by the end of 2010… Obviously, the bulk of Verizon’s early roll-out won’t hit until 2011, so what better way to bolster the program than the introduction of the iPhone?:
Read more in the full article – recommended – here.
[Thanks to MacDailyNews Reader “JES42” for the heads up.]