“Nomura downgraded T-Mobile US on views that its market share gains vs. AT&T, Verizon and Sprint are winding down, with AT&T turning more aggressive on marketing after the debut of Apple’s iPhone 7,” Reinhardt Krause reports for Investor’s Business Daily.
“Nomura analyst Jeffrey Kvaal, in a research note Friday, downgraded T-Mobile, controlled by Deutsche Telekom, to neutral. Kvaal lowered his price target on T-Mobile stock to 44 from 46,” Krause reports. “Kvaal said wireless competition will heat up again when Apple rolls out the iPhone 7, expected this fall. While expectations for Apple’s iPhone 7 have been overshadowed by bigger expectations for next year’s iPhone 8, wireless firms still will ramp up promotions for the 7, says Kvaal.”
Krause reports, “‘We expect the iPhone 7 launch to return promotional intensity and phone upgrade rates to second-half 2015 levels,’ he wrote. ‘AT&T may also become a shade more competitive. We expect T-Mo’s share of industry net adds to fall (as it did in second-half 2014) and thus limit upside to estimates.'”
Read more in the full article here.
MacDailyNews Take: Behold, real competition among carriers desperate for the best customers! The iPhone user is finally in the driver’s seat!