Yair Reiner of Oppenheimer predicts that if the iPhone goes on sale for Verizon customers, Apple will sell an additional 12 million units, resulting in an additional $7 billion. Below are some highlights from a Fortune article discussing the potential Verizon deal:
– Over the last year, Apple sold 11 million iPhones into AT&T’s (T) installed base of 65 million subscribers. Some of those customers might switch to Verizon if and when it gets the device, but with its 83 million pre-paid subs, Verizon would likely provide at least 12 million net additional unit sales for Apple.
– Adding a second U.S. carrier would blunt the competitive threat from Google’s (GOOG) Android platform, which Verizon has been promoting heavily as its answer to the iPhone…
– An additional 12M units would translate into $7B-plus in revenue and $3.00-plus in EPS per year?which isn’t pre-baked into expectations.