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Munster: Street Doesn’t Understand Verizon Impact On Apple

Apple aficionados were buzzing Wednesday about reports that suggested it’s official– Steve Jobs struck a deal to release a new iPhone early next year on Verizon’s network.

"People have been talking about this for 2 years but I don’t think they fully understand how big an impact it could have to the model," Piper Jaffray analyst Gene Munster tells the Fast Money desk.

"We did a survey and for every 1 person that was thinking about buying an iPhone there were 3 that decided not to do it because they wanted Verizon," he explains.

However, even if the Verizon iPhone only sparks the same volume of sales as the AT&T iPhone the gains will be substantial.

"AT&T accounts for 12% of Apple's overall sales driven by 90 million subs. "Verizon has 92 million subs. Assuming that the iPhone adoption is at the same rate as it’s been on AT&T the deal would add an additional 12% to Apple’s overall sales," Munster tells us.

Of course the multi-million dollar questions is - how much of this is already baked into share price?

"Some of it is in the stock but I think there’s a long way to go," Musnter tells us.

According to the Wall Street Journal, the new phone will be similar to the current iPhone 4 sold by AT&T. However, the phone is expected to use an alternative wireless network technology known as CDMA. AT&T phones use GSM network technology.

AT&T has had an exclusive arrangement with Apple to carry the hugely popular smartphone since its 2007 launch.

A spokesperson for Verizon declined to comment when reached by CNBC Wednesday afternoon.

*Find out what the Fast Money traders have to say about these developments. Watch the video now!



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Trader disclosure: On Oct. 6, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Guy Adami owns (AGU), (INTC), (BTU), (NUE), (C), (GS) and (MSFT); Tim Seymour is long (AA), (AAPL), (BBY) and (MON); Karen Finerman's firm is short (MDY); Karen Finerman's firm is short (SPY); Karen Finerman's firm is short (IWM); Karen Finerman's firm is short (IJR); Karen Finerman's firm is long Russell 2000 Puts; Karen Finerman's firm is long S&P 500 Puts; Pete Najarian is long (AKAM) calls; Pete Najarian is long (DD) stock; Pete Najarian is long (WFC) put spread; Pete Najarian is long (BP) call spread; Pete Najarian is long (GDXJ) stock; Pete Najarian is long (ABX) call spread; Jared Levy is long (SPX); Jared Levy is short (GLD); Steve Cortes is short (XLF); Steve Cortes is short (BAC); Steve Cortes is short Mex. Peso; Steve Cortes is short Euro; Steve Cortes is short (BIDU); Steve Cortes is short corn; Steve Cortes is long German bonds

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