NEW YORK (
) -- When it comes to playing Verizon iPhone stocks,
But there are other, less-obvious stocks that stand to gain when the Verizon iPhone sales launch opens to the general public on Thursday morning.
Verizon, which enjoyed
on its first day of iPhone pre-orders last week, could impact a host of networking companies, said Mark McKechnie, a telecom equipment analyst at Gleacher & Company.
will tangentially benefit from the increased traffic," he told
. "A smartphone probably uses ten times the bandwidth of a feature phone and the iPhone is at the high end of that -- Verizon is already talking about throttling back
heavy users of data."
McKechnie said that Ericsson is well-positioned thanks to its base stations and back-haul networking infrastructure, while Cisco and Juniper could enjoy increasing demand for their routers and switches.
Mike Walkley, an analyst at Canaccord Genuity, thinks that Ericsson, in particular, will benefit from Verizon increasing its network capacity, along with wireless equipment specialist
Alcatel-Lucent recently clinched a $4 billion contract with Verizon Wireless to support its 3G network expansion and the telco's 4G build-out. Ericsson is also working with Verizon around 4G, while Powerwave is said to provide the telecom giant with broadband antennas and amplifiers.
Powerwave has not yet responded to
request for comment on this story.
The other beneficiaries of the device are companies providing components for the phone itself, most notably Qualcomm, which
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
. "For Qualcomm, obviously, the more volume, the better."
Analysts have already predicted that Verizon will sell
this year, a figure that may prove conservative if
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
service provider KDDI over in Japan, we have China Telecom in China, and we have some Indian and Korean markets that are running the CDMA/EV-DO technology."
An early tear-down of the Verizon iPhone by
reveals that most of the components remain the same from the iPhone 4, although the
chip is absent and
now provides a chip within the device.
According to iFixit.com, the Verizon iPhone still contains power amplifier technology from
, an audio codec from
Verizon will resume online pre-ordering for the iPhone at 3:01 a.m. ET Wednesday. The device will be available in stores from 7 a.m. local time on Thursday.
--Written by James Rogers in New York.
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