M1

M1: Morgan Stanley maintains O/w. Note that iPhone 4S Launch by grp is a first step towards pricing increase.

For iPhone 4S 16GB low to mid-end plans (monthly spending of $36 and S$56), customers will now have to pay an additional $25 for the handset ($505 and
$235 vs $480 and $210 before for the 16G model).

New prices imply that customers have to pay an additional $10-25 vs similar plans for the previous iPhone models. House will closely watch out for the iPhone 4S introductory prices from SingTel and StarHub. If both competitors follow M1 in increasing the handset prices, it could set the stage for future change in data allowance and provide operators with the opportunity to monetize rising data usage.