JP Morgan Comments on iPhone Releases from Leap Wireless
JP Morgan has published a research report on Leap Wireless (NASDAQ: LEAP) commenting on the company's announcement that it will be releasing two versions of the iPhone starting on June 22.
In the report, JP Morgan writes, "We will watch with interest how the iPhone impacts Cricket sales. The $399 and $499 price points have historically been nearly irrelevant in the prepaid landscape, and unlike T-Mobile's Value plan, customers will need to come up with the full price on the day of sale. This is not something that traditional prepaid customers can usually do. However, we do believe that the iPhone could benefit Cricket in terms of driving traffic to the store, with most customers choosing a more reasonably priced device instead. Given the launch is in the slow summer months, it could be a nice traffic driver in 3Q."
JP Morgan maintains its Overweight rating on Leap Wireless, which closed yesterday at $5.77.
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