Boston, MA 01/21/2014 (wallstreetpr) – The last week turned out to be quite eventful for the NII Holdings Inc (NASDAQ:NIHD). The stock prices moved higher by $0.58, an overall gain of over 24%, as they ended at $2.98. The news which caused the momentum was mainly the iPhone deal.
The Apple iPhone Deal
On Friday, the company announced that it has entered into an agreement with Apple Inc (NASDAQ:AAPL), which specifies that it will offer the two Apple iPhones 5S and 5C to its Nextel customers in Brazil,starting as early as 31st January’2014.
Experts feel that the deal should help NII in a great deal to strengthen its position in Brazil, amid the bunch of much powerful mobile carriers present in the country. Supporting the idea, Stifel has also assigned a $12 price target for the company, which is 300% above the current trading level. It will be worth mentionable that the Brazilian carriers already have iPhone in their product offerings, but the sales are under pressure due to exorbitant taxes and tariffs.
Early last week, NII recorded similar rally as it had tied a deal with Telefonica, which gave access to NII to the former’s voice and data services across Brazil and Mexico. However, the gains so posted soon came down in the later days.
NII Has Tough Competition To Answer
NII has been up against extreme competition from Telefonica Brasil SA and America Movil, who have been taking away NII’s major business customers through offering unlimited call plans and bigger and better networks.
NII, which has already been targeting to get a sizable market share in Mexico, Brazil and Chile and Argentina, plans to cut workforce in view of its restructuring plans. Nevertheless, the company is aggressively taking strides to attain its objective. A more upside surprises still await its investors, if the company continues to maintain profitability.
