Verizon getting the iPhone later this year is no longer a done deal in the mind of one financial analyst. Indeed, Credit Suisse has downgraded the carrier, expecting AT&T could retain an exclusive iPhone contract until at least mid-2011.
The financial firm downgraded its recommendation for Verizon to Neutral, down from Outperform, and shaved its target price to $30 per share, down from $32.
Although Verizon may āeventuallyā be awarded an iPhone contract as Apple drops its exclusivity in the U.S., āthere is much greater probability that AT&T keeps exclusivity for another 12-18 months than investors realize,ā Credit Suisse told investors Thursday.
Prevailing wisdom previously was that AT&Tās exclusive contract would end in June of this year and Verizon was the likely beneficiary. However āwe no longer think AT&T will lose iPhone exclusivity in mid-2010,ā the financial company writes. The delay could benefit Research in Motionās RIM in the U.S., it said.
The analysis comes a day after reports Verizon and Apple were āstill talkingā about an iPhone deal. AT&T may have underbid Verizon and other carriers to win the iPad contract. Although the carrier would only say its iPad data plan āpricing speaks for itself,ā AT&T beat out Sprint, T-Mobile and others to connect iPad users.
Apple recently came to AT&Tās defense amid questions about the carrierās 3G network. Appleās chief operating officer Tim Cook told reporters he had āvery high confidenceā AT&T can correct problems that have plagued reception.
[Via Barronās]
