Two Ways To Play: Will iPhone Mark AT&T Low?
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AT&T plans to sacrifice approximately 10 to 12 cents per share in earnings through next year to subsidize the cost of the new phone. For customers willing to sign a two-year contract, the phone will be priced at $199.
The iPhone will only be available in AT&T and Apple stores, and not online like last year. Plans will start at $69.99 per month. Customers will also have the option of choosing another carrier such as T-Mobile (DT), but not Sprint (S) or Verizon (VZ) due to incompatible technology.
For context, see Professor Sean Udall's recent column, Trading Tech: Apple, Citrix, Riverbed, Cree.
From the Bull Pen: Is AT&T the better upside play versus Apple? The "sell in May, go away" did hold but it could be time to revisit this stock.
From the Bear Cave: As innovative as the company is, can Apple's stock survive the difficult retail environment? A rally to near $180 could provide a downside opportunity for those bearish.
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