NEW YORK (TheStreet) -- Apple (AAPL) shares rose 1.84% to $461.05 as RBC Capital Markets analyst Amit Daryanani wrote that the tech giant would announce the iPhone 5S, along with a more affordable iPhone, later this year.
Daryanani's channel checks suggest that Apple is working to launch both phones in the June or July time frame. That corresponds with recent rumors that Apple would announce a new iPhone this summer, as it refreshes its product line up. Daryanani believes the lower-end iPhone will have plastic casing, no Retina display, and be targeted toward the sub-$400 price point. "Apple is going to capitalize on the low-end Smartphone market by launching a new phone that will address what we consider to be a ~500M total addressable market in CY14," Daryanani wrote in the report.
He believes a lower cost iPhone would be worth an additional $22 billion in revenue and $5 in earnings in 2014, "which suggests the product could be worth $50+ to [Apple's] stock price."
Salesforce.com (CRM) shares rose 2.17% to $176.47 after the cloud computing giant announced a four-for-one stock split, effective next month. Salesforce, which recently reported fourth-quarter earnings, is increasing the number of its shares outstanding, bulking-up to 1.6 billion from 400 million. Shareholders of record at the close on April 3, 2013 will be eligible for the split, and will receive an additional three shares for every outstanding share held at that time. The company, led by CEO Marc Benioff, said in the press release that it expects the additional shares to be distributed by the transfer agent on April 17, and will begin trading split-adjusted on the next day, April 18, 2013. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
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