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Filed under: Apple Financial

AAPL down sharply after two ratings cuts

by Robert Palmer (RSS feed) on Sep 29th, 2008

Bad day for Big Rainbow: RBC Capital's Mike Abramsky and Morgan Stanley's Kathryn Huberty cut their ratings and price targets on Apple stock, both citing weakness in consumer spending on PCs.

AAPL was down 17.38 at 110.86 (-13.58%) as of this writing: a 20-minute-delayed chart is above.

Abramsky's price target on AAPL shares is now $140 (down from $200), while Huberty's is lower at $115 (down from $178). Huberty also notes Apple will struggle because the company "does not play" in the sub-$1,000 laptop market.

In a slim bit of good news, Abramsky raised his estimate of the number of iPhone units sold during the fourth quarter to six million, up from five.

AAPL's price during the trading day has been its lowest in over a year.

Tags: aapl, abramsky, BreakingNews, huberty, morgan stanley, MorganStanley, ratings, rbc, stock

Filed under: iPhone

iPhone to become subsidized, non-exclusive?

by Cory Bohon (RSS feed) on May 5th, 2008

RBC analyst Mark Abramsky says that the iPhone will exceed its projected goal of 10 million devices sold in 2008 -- possibly by selling upwards of 14 million. How is Apple going to get these sales figures? Well, Abramsky suggests that AT&T could subsidize the iPhone by up to $200 for the 8GB model. This would mean the 8GB iPhone could sell for as little as $199 (previously rumored here); and possibly increase sales by 50 to 100 percent. According to Abramsky, this would mean Apple would have to drop revenue sharing with AT&T.

Mr. Abramsky also believes that Apple will start to sell unlocked iPhones (or iPhones without a specific carrier) without a premium over the AT&T iPhones. He suggest that unlocked iPhones could increase the adoption rate by two to three times for Apple's phone.

All of Abramsky's conjecture hinges on Apple and AT&T agreeing to end their 5 year exclusivity agreement early. We here at TUAW see no real reason for either company to agree to that, at least not in the States.

Tags: analyst, at and t, AtAndT, ATT, iPhone, Mark Abramsky, MarkAbramsky, RBC, tweet-this, unlocked

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