Apple Deal Bites Into AT&T

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.