According to several reports, an Apple (
) iPhone and Sprint (
) deal is increasingly likely with the iPhone 5 especially because
Sprint will be the sole remaining carrier with an unlimited data
plan offering, something desirable to Apple. Although unconfirmed,
if a deal goes through it could be a big benefit to Sprint and
Apple. Apple will gain access to Sprint's 45 million mobile
subscribers, thereby challenging Google (
) Android's increasing presence in the mobile OS market while
Sprint would now be on the same footing as AT&T (
) and Verizon (
), which already sell the iPhone.
Our $430 price estimate for Apple stock
is about 20% above market price.
Apple could challenge Android's increasing
According to a recent Comscore report, Android continue to widen
its gap with Apple in the U.S. smartphone market with a market
share of 38.1% versus Apple's 26.6%. Apple would like to narrow
down this gap, and the deal with Sprint would be a good way to do
it. Access to Sprint's 45 million subscribers could help Apple gain
market share at a fast rate going forward.
How Sprint could benefit?
Sprint's share in the U.S. mobile subscriber market has been on
a decline since the last few years. Having iPhone will not only
help it gain more subscribers and hence improve its market share,
but also push up the average revenue per customer for Sprint as
iPhone users are generally considered to be heavy data users.
See our complete analysis for Apple stock here
for Sprint stock here