Apple Inc (AAPL)

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08:52 AAPL Apple Computer: A closer look at the potential iPhone ecosystem - UBS (86.14 ) -Update-

UBS continues to believe that AAPL will launch its cell phone initiative in the March/April timeframe with initial phone shipments possible as early as the end of the next quarter. Firm's research points toward AAPL becoming its own carrier, or MNVO, likely using Cingular's GSM network.

While there are a number of challenges associated with MNVO, AAPL may be the best positioned of any player yet to make it work given its distribution, brand, installed base of iPods and software/iTunes integration.

Firm notes they currently do not have cell phones or related services in their model, but long-term they est potential incremental annual rev contribution of about $1.5 bln, assuming a $300 ASP and 5 mln units sold, and annual EPS contribution of about $0.09 for the hardware alone.