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All Our iPhone Trades, Right Here & Now

After months of speculation, it’s finally official. On Tuesday Verizon said it would sell Apple's iPhone beginning February 10th priced at $199 for a 16-gigabyte model or $299 for the 32-gigabyte model with a two-year agreement.

Verizon's announcement puts an end to AT&T's three-year old status as the exclusive U.S. provider for the iPhone. Pre-orders start on Feb. 3.

What’s the trade?

Instant Insights with the Fast Money traders and friends

Oppneheimer analyst Timothy Horan tells us the new iPhone is no good for service providers, period. Of course it’s a negative for AT&T simply because they lose exclusivity but he also thinks it’s a negative catalyst for Verizon because, ”there are very high subsidies in the iPhone,” he says, “and that could impact Verizon’s earnings.”

"As the Street crunches the numbers earning could be revised down 5-10%," he says.

And that's not all.

Considering the run the stock's had since October he says share price could follow the earnings revisions - lower. "Also down between 5-10%," says Horan.

Joe Terranova shares the caution. “Now, investors have to have some concerns about balance sheet constraint at Verizon with the introduction of the iPhone,” he adds.

Steve Cortes is also cautious of Verizon. “Apple is very good at squeezing their vendors,” he says. And if you’re a chart watcher he adds that the price action this year has been terrible.

UBS analyst John Hodulick sees it differently.

“I think it will pay off from day one. I expect Verizon will sell a lot of devices. It’s going to take a lot of market share away from competitors and it’s going to accelerate their revenue growth. From an earnings standpoint; I think we see earnings upside in 2012.”

Gary Kaminksy is concerned about margins. He thinks that 6 months from now the service providers may have to get very aggressive to hold customers.

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However, that’s not to say there’s aren’t any winners to the Verizon iPhone.
Most of the traders think Apple wins.

Jefferies analyst Peter Misek thinks its all systems go for Apple. He’s raised his price target to $450 from $365.

Analyst Timothy Horan says the Verizon iPhone is still a good deal for Apple suppliers and the wireless towers.

“Alactel-Lucent may be a beneficiary because they’re a top supplier of infrastructure to Verizon,” adds Brian Kelly.

However Kelly can’t get on board a long position in Apple. “The iPhone is almost old technology,” he says. “If I were long Apple on this catalyst I’d take profits. I think 4G and other technologies are the future.”

Elsewhere in the space Joe Terranova suggests watching Google and RIM . “Both are trading higher

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Trader disclosure: On January 11th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour owns (AA); Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (F); Seymour owns (GE); Adami owns (AGU); Adami owns (C); Adami owns (BTU); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami's wife works at (MRK); Jon Najarian owns (AA), is short (AA) calls; Jon Najarian owns (AAPL), is short (AAPL) calls; Jon Najarian owns (ADBE), is short (ADBE) calls; Jon Najarian owns (BBY), is short (BBY) calls; Jon Najarian owns (BP), is short (BP) calls; Jon Najarian owns (C), is short (C) calls; Jon Najarian owns (F), is short (F) calls; Jon Najarian owns (GM), is short (GM) calls; Jon Najarian owns (GS), is short (GS) calls; Jon Najarian owns (NFLX), is short (NFLX) calls; Jon Najarian owns (QCOM), is short (QCOM) calls; Jon Najarian owns (AXP), is short (AXP) calls; Jon Najarian owns (STI), is short (STI) calls; Jon Najarian owns (ARUN), is short (ARUN) calls; Jon Najarian owns (EXPE), is short (EXPE) calls; Jon Najarian owns (GXDX), is short (GXDX) calls; Jon Najarian owns (LULU); Terranova owns (GM); Terranova owns (C); Terranova owns (VRTS); Terranova owns (UPL); Terranova owns (PEP); Terranova owns (OXY); Terranova owns (GS); Terranova owns (LTD); Terranova owns (CNQ); Terranova owns (PVH); Terranova owns (CVI); Terranova owns (RIMM); Terranova owns (GLD) puts; Terranova owns (SLW) puts

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
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Virtus Investment Partners Owns More Than 1% Of (CLB)

For Barry Ritholtz
FusionIQ owns (AMT) for clients

For Andy Busch
Busch has no disclosures

For Peter Misek
Jefferies is a market maker in (AAPL)
Jefferies is a market maker in (CELL)
Jefferies is a market maker in (RIMM)
Jefferies is a market maker in (SWIR)
Jefferies acted as a financial advisor to Enfora on sale to (NVTL)
Jefferies is a market maker in (NVTL

For Anthony Scaramucci
Scaramucci and Skybridge Cpital own (UNH)

For John Hodulik
(VZ) is or within past 12 months has been a client of UBS Securities
UBS Securities has provided or are providing non-securities services to (VZ)
UBS Securities has received compensation from (VZ) within the past 12 months

For Scott Nations
Nations has no disclosures

For Kevin Starr
Agios, Edimer, Zafgen, Bluebird Bio Are Portfolio Companies Of Third Rock Ventures

For Tim Seymour SOT
No disclosures for (ADBE) on 11/23

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