Apple Could Eventually Want To Own iPhone Experience 'More Fully' With Cell Service: JP Morgan

In a report published Wednesday, JP Morgan analyst Rod Hall maintained an Overweight rating and price target of $145 on Apple Inc. AAPL. The company has denied rumors that it intends to become a mobile virtual operator network (MVNO) or provide wireless services.

However, according to Hall, "We aren't surprised that Apple has denied this given the importance of its relationship with carriers. However, we believe that it is reasonable to think that Apple eventually would like to own the iPhone customer experience more fully."

Related Link: Apple Downgraded By Bank Of America On iPhone 'Headwinds'

The analyst went on to state that historically, carriers have used resellers and MVNOs for their networks. If a company like Apple were to launch its own MVNO, it would be a cause for concern for carrier, since the company could easily transform itself into an infrastructure based service provider, after such a transformation.

In addition, the analyst reported that the company was unlikely to launch a successor to the iPhone 5c in 2015. The company is to instead introduce its next-gen budget smartphones in 2Q16. These devices are expected to come with 14/16nm FinFET chips.

Apple is also expected to announce its iPhone 6s and 6s Plus in September.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorReiterationAnalyst RatingsJP MorganRod Hall
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!