The other beneficiaries of the device are companies providing components for the phone itself, most notably Qualcomm, which ousted Infineon (IFX) as the Verizon iPhone chip supplier and has seen a bunch of analyst upgrades in recent weeks.
"Qualcomm is a beneficiary, for sure," said Gleacher's McKechnie. "The CDMA version is Qualcomm's first chip within the iPhone -- we are estimating about $12 of chip content for Qualcomm on this iPhone.""It's a big win for Qualcomm -- it's a potential solid slot for them moving forward," added Francis Sideco, principal analyst at tech research firm iSuppli. "For Qualcomm, obviously, the more volume, the better." Analysts have already predicted that Verizon will sell around 11 million iPhones this year, a figure that may prove conservative if recent iPhone sales at AT&T (T) are anything to go by. The Verizon iPhone could also provide a springboard for Qualcomm into foreign markets. The chipmaker is providing Verizon with a 3G wireless chip for EV-DO, potentially opening up overseas opportunities. EV-DO, which stands for Evolution-Data Optimized, is an advanced form of CDMA that is used in fast-growing telecom markets such as China. "There's probably 200 million CDMA/EV-DO phones sold a year across the world, so Verizon is not the only EV-DO market that is opening up," said Gleacher's McKechnie. "There's
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV