Sprint’s Stock Finds New Life on iPhone 5 Announcement
According to the Wall Street Journal, Sprint (NYSE:S) will begin selling the new version of the Apple (NASDAQ:AAPL) iPhone in October of this year. [1] A few weeks back, we noted that this deal could be a win-win situation for Sprint and Apple in a post titled A Sprint-Apple iPhone Deal Could be a Win-Win. We believe this will help put Sprint on the same footing as AT&T (NYSE:T) and Verizon (NYSE:VZ) that both already sell the iPhone and so can hopefully stem the drop in subscribers. Apple also benefits as it helps challenge Google’s (NASDAQ:GOOG) Android OS that is gaining rapid adoption by giving it access to Sprint’s roughly 45 million strong customer base.
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After the announcement of this report, Sprint stock shot up by more than 10% while Apple’s stock was up nearly 5% on the highly anticipated iPhone 5 announcement.
Our $4.75 price estimate for Sprint stock is about 30% above market price while our $510 price estimate for Apple stock is about 35% above market price.
See our complete analysis for Sprint stock here| for Apple stock here
Notes:- Sprint to Get iPhone 5, Wall Street Journal, August 24th, 2011 [↩]