Bear Stearns analysts Andy Neff, Bill Hand and Ted Chung sent a note to clients today on Verizon Wireless' plans to counter the iPhone launch at AT&T. Key excerpts:
VZ plans to counter AAPL iPhone with LG Prada. According to web reports, VZ is expected introduce its own touch-based phone (LG Prada) shortly in response to the pending launch of AAPL iPhone in late June. Similar to iPhone, LG Prada features a touch screen user interface with multimedia support, although it does not have a QWERTY keyboard. LG Prada phone is priced at around $600 (unsubsidized), which is similar to iPhone at $500/$600, although final subsidized price of LG Prada could be substantially lower – i.e., LG Prada phone is offered for free by select carriers in Europe with a 1.5 year contract. Stock impact: neutral for AAPL (another competitor but iPhone has additional features, i.e., integration with iTunes and email); positive for SYNA (major rollout of mobile phone with SYNA technology).
Apple iPhone (left), LG Prada (right):
Credit: Wayne Smallman