Piper Jaffray on Apple’s iPhone

I’ve been planning a post on Apple’s iPhone for a while now, and I still plan to write something, but until then, check out Piper Jaffray’s evaluation of the iPhone.

Cingular benefits from the added subscribers and press surrounding the device, while Apple benefits from the largest U.S. carrier as an initial market for the device. We believe the Cingular will be aggressively attracting new subscribers during the launch of the iPhone by reducing service fees and announcing discounts to iPhone customers. Of note also is the fact that by partnering with Cingular, Apple does not need to be involved with any billing or subscriptions for wireless users. Cingular has confirmed that there is no revenue sharing plan in place from added iTunes Store users because of the iPhone. Cingular has also confirmed that there will be no Cingular branding on the iPhone, other than the wireless provider’s name in the corner of the screen where the signal strength is displayed. The key takeaway for Cingular in the relationship is the addition of customers who will likely be significant users of margin-enhancing value-added services for the operator.

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