Apple Roundup: Foxconn, iPhone 3GS, Tim Cook
NEW YORK (TheStreet) -- Apple's(AAPL) iPhone 3GS could become a pre-paid phone, and Apple's Chinese supplier is ramping up production for none other than ... Apple.
Foxconn is Apple's main Chinese supplier and produces iPads, iPods, Macs and iPhones, but the report didn't say for what the plant would be used.
There has been a lot of rumor and speculation of Apple offering a pre-paid phone for the developing world, and it looks like the iPhone 3GS may in fact become that phone.
Jefferies analyst Peter Misek said Apple has signed a deal with a major "global distributor" that will bring the iPhone 3GS to pre-paid carriers.
"The distributor is tasked with penetrating the prepaid markets around the world as well as expanding channels for the iPhone 3GS in the developing world. We view this as a positive event given that consensus believes in an iPhone gap till the iPhone 5 launch," Misek wrote in a note.
Misek said he thinks the iPhone 3GS is going to be repriced from $375 to between $200 and $250, allowing someone to buy it with no subsidy. Misek rated Apple a buy with an $800 price target.
Apple CEO Tim Cook is scheduled to meet with Samsung CEO Choi Gee Monday to try to settle patent issues between the two tech giants, as mandated by a federal judge.
Shares of Apple were higher Monday, up 2.92% to $545.88.