Apple, Inc Throws Its Weight Around

by StockJockey

Tuesday, July 08, 2008 - 12:55 pm

Canadian mobile phone users have long struggled with onerous usage plans that enrich the carriers, while ripping off the consumers who have few choices north of the border.

But Apple, Inc (AAPL-NASDAQ) is helping the little guy, and will counterpunch Rogers where it hurts. Right in their wallet:

Apple, disgusted with Rogers Wireless for dumping egregious service plans on would-be iPhone 3G buyers, has decided that its Canadian retail stores will have no part in helping the carrier market the new handset to customers, AppleInsider has learned.

As a result, Canadian Apple Retail stores won’t be selling the new 3G touchscreen phones come Friday, representatives for the Cupertino-based company said during a private conference call on Monday evening. Instead, it will be up to Rogers and its partner Fido to lock subscribers into steep 3-year contracts that require a minimum monthly payment of $60 for just 150 minutes, 75 text messages, and 400MB of data.

Calls to Canadian Apple retail stores early Tuesday confirmed the move once over. Although the majority of the of stores contacted by AppleInsider said they were still unsure whether they’d be selling the new iPhone, one representative ultimately confirmed that Rogers and its partner stores will be the only place to buy iPhone 3G come Friday. Canadian Apple retail stores will, however, have demo units on hand the same day. AppleInsider

The handsets might initially be in tight supply at the iPhone 3G rolls out, and apparently Apple is diverting shipments to Europe, at Canada’s expense.

It is too bad for Canadian iPhone fans; perhaps they will win in the end, and eventually get a better deal. The fact that Canada is RIM country cannot be ignored, either. Did it play a role in the spat?

Apple shareholders might want to be thankful the stock has held the $165 level several times over the past two weeks; semi-civil conversations with the Apple-onians have convinced me to get more constructive on the stock after it held technical support. Ah, the wonders of a debate.

WWDC was the event to sell into, not this week’s launch of the iPhone 3G, and if commodities continue to roll over some of the hot money is certain to find its way into the stock.

The stock’s relative strength since early May has been remarkable, and there might be more to come on the upside. At least that is what I am thinking.

It should be an interesting weekend.

Let ‘er Rip.

Update: Apple wins, Rogers relents. Here is story on Reuters.
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Next stop $190? The fade trade might be over on this puppy...

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Spat with Rogers leaves Canadian Apple stores without iPhones
AppleInsider

Breaking: Apple Pulls iPhone 3G in Canadian Apple Stores
Techcrunch
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Comments:

if apple would build a version of the i-phone that could work with other than gsm ,the other carriers would be able to give rogers competition ,as it stands ,i believe rogers is the only game in town ,sad because i believe that some people will avoid the i-phone because of the air time costs and small data plans . like printers ,it costs more for the ink than the printer it’s self .

Andre.C

Posted by on 07/08/2008 at 03:21 PM