1. Entertainment72's Avatar
    Credit Suisse downgrades Verizon to 'Neutral'

    A Credit Suisse analyst downgraded Verizon Communications Inc. Thursday and said he no longer believes rival AT&T Inc. will lose its exclusive deal to carry Apple's iPhone before 2011.

    Jonathan Chaplin lowered his rating on Verizon to "Neutral" from "Outperform," and cut his share price target to $30 to $32.

    Chaplin said he'd originally preferred Verizon's shares over AT&T's in part because he believed AT&T would lose its exclusive iPhone contract with Apple in the middle of 2010. If this happened, he said a "substantial" number of subscribers and value would transfer to Verizon from its rival -- "an event that was not adequately priced into either stock," according to Chaplin.

    Now, Chaplin thinks AT&T won't lose its iPhone exclusivity until mid-2011 at the earliest.

    Apple Inc. and AT&T have not disclosed the length of their exclusive contract. But Apple appeared to reaffirm its commitment to AT&T on last month during the unveiling of its iPad tablet computer, when it announced that the carrier will be the sole U.S. data provider for the device.

    Chaplin also said his expectations for earnings-per-share growth at Verizon have "come down due largely to disappointing wireline margin results."

    Verizon shares slid 37 cents to $28.82 in midday trading. AT&T stock was down 33 cents at $25.25.
    02-05-10 08:18 AM
  2. iitaalliiaann1's Avatar
    I'm not one for the "he said, she said" scenarios that go on in these forums. You know...my second cousins, brother in law's, nephew's cleaning lady's husband's cousin said this.., kind of thing. But...my co-worker's next door neighbor, which I talk to on a regular basis because I would love a part time gig at a corporate store for a second job, is a high up exec for Big Red. He travels all over the country for big meetings and negotiations. He assured me that I would see the iPhone on Verizon some time his year. He didn't promise by June/July but definitely by Christmas time. There are a few issues that need to be ironed out and if both come to terms it will progress very smoothly. Thats all he would share with me due to all the hush hush about this future partnership but he told me to rest assured that it's coming. So go ahead and flame me but its what I was told.
    02-05-10 09:28 AM
  3. thinkamp's Avatar
    ATT will never "lose" the iPhone, they are just going to learn to share! Big deal!
    02-05-10 09:32 AM
  4. scorpiodsu's Avatar
    ATT will never "lose" the iPhone, they are just going to learn to share! Big deal!
    I agree. But I don't think it's up to them to "share". I think Apple holds all the cards. They will decide when they are ready to broaden the iPhone. I think AT&T probably gives up so much to Apple that they can do whatever they want and decide to stay to there for the time being. I think it may happen when LTE hits next year. All the other carriers know when the window is open to get in on the bidding they will have to give up a lot. And when the iPhone is ready for a LTE network, everyone and their momma is gonig to want one lol.
    02-05-10 09:44 AM
  5. Totalimmortal363's Avatar
    ^ You are spot on. Apple doesn't give us any real control of the iPhone.
    02-06-10 10:34 AM