Must Read Rumors

Prince Harry and Meghan Markle are “total homebodies” at Kensington Palace

Prince Harry is always on the road for his royal engagements. His girlfriend Meghan Markle is also busy as an actress. But in between they manage to make time to see each other.

Kate Middleton and Prince William will take George and Charlotte on royal tour of Poland and Germany

Prince George and Princess Charlotte will accompany the Duke and Duchess of Cambridge on their upcoming European tour.

Duchess Kate debuts new haircut at Wimbledon

Prince William’s wife appeared at Wimbledon with a new elegant and refined haircut that didn’t go unnoticed.

Kate Middleton to attend opening of Wimbledon tennis championships

An avid tennis fan for many years, the Duchess of Cambridge, née Kate Middleton, will be present on the first day of the Wimbledon Championships this year.

Kate Middleton reveals mom Carole Middleton’s crush on Roger Federer

The Duchess of Cambridge, née Kate Middleton, was invited to participate in a documentary about tennis and she made some revelations about her parents during the interview.

Prince Harry and Meghan Markle are “total homebodies” at Kensington Palace
Kate Middleton and Prince William will take George and Charlotte on royal tour of Poland and Germany
Duchess Kate debuts new haircut at Wimbledon
Kate Middleton to attend opening of Wimbledon tennis championships
Kate Middleton reveals mom Carole Middleton’s crush on Roger Federer

iPhone 5 rumors: changed subsidies won’t affect Apple

by Nicole
June 9, 2012 at 8:10 am

Recently analysts got alarmed by the decrease in Apple’s share price that could make US carriers stop continuing to subsidize the iPhone.

However, market watchers now believe that changes to the subsidies from mobile networks won’t affect Apple, on the contrary, it could actually be of help to the company.

Analyst Peter Misek at Jefferies & Co states that US networks will prefer to sibsidize “high-end” smartphones such as the LTE 4G iPhone 5, which would surpass Android sales.

Misek estimates that the subsidization of LTE smartphones means that “iPhone prices to the consumer could be lower than prices for mid-range Android devices and other handsets.”

“The iPhone 5 will be LTE-enabled and that the subsidy reallocation will likely help rather than hurt Apple,” he said.

In addition, Piper Jaffray analyst Gene Munster believes that AT&T will focus on tying iPhone 5 customers into longer contracts than previously. However, this method, he says, won’t have a visible effect on iPhone 5 sales.

“The bottom line is we expect both AT&T and Verizon’s (~12% of Apple’s revenue) upgrade threshold to be 20 months for the iPhone 5 release (October), with some potential AT&T exceptions for highly valued customers to get an upgrade after 18 months,” Munster wrote.

The analyst wrote that AT&T’s upgrade thresholds have been 11 months, 12 months, and 18 months, while with Verizon customers had 20-month contracts.

“While this threshold is slightly less generous than past upgrades, due to the high level of expected interest in the iPhone 5, we don’t believe less favourable upgrade windows will have a measurable impact on demand and we remain comfortable with our 49 m unit estimate (up 32% y/y) for the Dec-12 quarter,” Munster wrote.

What do you think? What is your gossip?

The rules: Keep it clean, stay on the subject and use English only - or we may delete your comment. If you see inappropriate language email us. Read our Terms and Conditions