Wednesday, July 6, 2011

Sprint Shares Rally On iPhone Rumor

Shares of Sprint Nextel Corp. (NYSE: S) rallied more than 2% on Wenesday after Citadel Securities analyst Shing Yin said that it is increasingly likely that there will be an iPhone from Apple (NASDAQ: AAPL) for the thir largest US carrier. The firm doesn't believe Sprint would be opposed to the device's high subsidy, which is in-line with some of its 4G smartphones. In addition, they believe Apple would welcome increased disturbing to better compete with Android. While timing remains uncertain, a Sprint iPhone could arrive before year-end. "We see little reason for Apple to hold back," the firm said. Even without the iPhone, Citadel believes Sprint's churn rate will likely continue moving down as a high proportion of its subscribers that are "locked in" to their two-year service contracts for the next 12 months. Stay tuned for more. 

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