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Depending on the iPhone features, Wu estimates that Apple could collect "low double-digits" in monthly fees through the arrangement.
And since there is little additional cost to Apple, Wu figures the monthly revenue will be high margin, "in the 80% range." "We believe this recurring revenue stream is high quality and adds an additional degree of stability and predictability to Apple's financial results," writes Wu, who increased his share price target to $145 from $118 based on the juiciness of this deal. Apple shares fell 93 cents to $90.50 Tuesday.TheStreet Premium Services
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,393.45 | 1,310.33 | 2,827.34 | 15.81 |
Oil *
101.78
|
|
DOWN
26.41 |
DOWN
2.99 |
DOWN
10.02 |
DOWN
0.44 |
10 Yr
1.58%
SPDR Gold
151.62
|
|
-0.21%
|
-0.23%
|
-0.35%
|
-2.71%
|
Data delayed 20 minutes |
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