Verizon Set For Apple Boost: Analyst

The smartphone helped the telecom giant post record subscriber growth, and AT&T activated 3.2 million new iPhone customers in the quarter. Ma Bell even managed to widen its wireless operating margin to 24.6%, up from 23.8% sequentially, despite the high cost of subsidizing between $300 and $500 of each iPhone sale.

Broadpoint AmTech estimates that Verizon could sell around 14 million iPhones in calendar year 2011. Assuming average selling prices of around $500, this would equate to more than $7 billion of pro forma revenue, according to Marshall.

The telecom giant, however, is unlikely to dangle the same financial carrot as AT&T. "We believe AT&T's 'sweetheart' carrier subsidy for the iPhone would be unattainable at Verizon," wrote Marshall. "Thus, we assume the general $300 carrier subsidy."

Even with a lower Verizon subsidy, Apple would still benefit from the deal. Despite the iPhone's popularity, Broadpoint AmTech estimates that Apple owns around 3% of the total handset market, so there is plenty of potential for gaining share.

Shares of Verizon rose 2.1%, to $29.81 Wednesday. Apple's stock shed 1.9%%, to reach $193.64, as the Nasdaq dipped 1.34%.

-- Reported by James Rogers in New York

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