updated 11:50 am EDT, Fri July 13, 2007
Europe's iPhone war
Analysts with American Technology Research say they believe that the fight for European iPhone contracts may boost Apple's stock substantially. Having witnessed AT&T's success with a contract in the United States, the European divisions of O2, Orange, T-Mobile and Vodafone are all said to be bidding aggressively, with the last of four being tipped as a prime candidate. Although the companies may end up with separate contracts based on nationality, AmTech argues that the strength of Apple's position will allow it to dictate terms, much as it did with AT&T.
Aside from financial success, this strength comes from Apple's general mainstream appeal, which has been luring American subscribers away from other phone carriers. Some 25 percent of current iPhone/AT&T subscribers are said to have come from rival networks. Because of this, AmTech expects that after a short-term drop in share prices, Apple's stock may rise to $165 from its July 13th price of about $135.