There have been reports that Apple (NASDAQ:AAPL) has been buying Qualcomm chips in bulk. A report in the Wall Street Journal stated that Apple had bought "millions" of CDMA chipsets from Qualcomm. These are the type of chips that run on Verizon's network. Verizon, which has 92 million wireless customers would mean big business for the tech giant, which would have to cut its exclusivity deal with AT&T. Rumours have been floating around Wall Street that Apple is working on its next iPhone which would support Verizon's network. Although AT&T is a bigger company by market capitalization, Verizon has more wireless subscribers than AT&T. The additional consumers could potentially double Apple's market size in the United States as VZ customers will now have the opportunity to switch to the iPhone while staying on their network.
Shares of Apple traded flat in after hours trading. The stock has run up considerably to $289, however with solid prospects in place including new products such as the iPad and the redesigned iPods, the stock could go much higher.
"It's innovation after innovation," said Andy “Raw” Kibbens, co-CEO of The Markets Are Open, "I think the stock can break $300 in the coming weeks."
Kibbens increased his price target for Apple back in May to $333 per share. The stock has risen steadily since then.
To read the full Apple report, click here.
No comments:
Post a Comment