Shed a Tear for Apple
I am anticipating a major war, and I'm not referring to any Middle East conflicts. I am talking about the price war that's about to occur in wireless services -- one that will quite possibly leave Apple (AAPL) as collateral damage. As is often the case, my thesis has been bubbling for some time, but it's recently crystalized from real-life experience as a customer, as opposed to my abstract desk research as an investor.
The U.S. wireless-carrier business has consolidated down to a three-company race, with Verizon (VZ) and AT&T (T) commanding the heights as Sprint Nextel (S) struggles to keep up. As with most human situations, desperate but viable third-party competitors can often cause massive dislocation if they are given a helping hand. In this case, I believe Sprint is about to painfully disturb the margin structure so carefully nurtured by Verizon and AT&T....704 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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