Nomura Says 'Key Element' of Apple iPhone Business Model at Risk as Verizon Commitment Closes in 2013

Nomura analyst Stuart Jeffrey believes a "key element" of Apple's

iPhone business model is at risk as $23.5 billion in purchase commitments from Verizon Wireless

come due this year. Jeffrey said Verizon's contract with Apple appears to end this year as the deal comes due, with a liability of nearly $12 billion outstanding. A Verizon shortfall of $12-14 billion would be valued at $4-5 per share. It is not likely that Apple will "advertise" that partnerships have fallen "far short" of purchase obligations, according to Jeffrey. Jeffrey also believes iPhone marketing support may drop if the Verizon obligation is waived by Apple. If Apple fails to impose commitments, Jeffrey sees other carriers following suit by reducing marketing support. Shares of both Apple and Verizon are up approximately 1 percent at last check.