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  • Analyst: Cheaper, Better iPhones in June, Apple Even Richer

    Saying that price is the "biggest barrier" to the iPhone growing in popularity, a financial analyst predicts lower-priced iPhones in the model's expected refresh this June. Morgan Stanley analyst Katy Huberty also said that the new model will feature new technology, including what is vaguely referred to as "gesture-based functionality," and that this could propel Apple stock to as much as $435 per share (it is selling at $202 as of this writing). In a separate report, a different analyst predicted that half of Apple's revenue in 2010 would come from iPhone sales.

    Apple's pattern has always been to drop the price of existing models whenever they upgrade the line. Last year, for example, the price of the iPhone 3G dropped to $99 in the US when the 3GS came out, featuring video recording, a compass, line-speed encryption, voice control, etc. In her report to clients today which was revealed by the Fortune Brainstorm Tech blog on CNNMoney, Huberty released the completely unsurprising resuts of a survey that most people hesitated buying an iPhone because of its price, especially where there is no carrier subsidy. She claimed that Apple could get up to 10% of the mobile phone market worldwide by dropping what is called the Total Cost of Ownership (TCO) of the phone, which would include things like initial purchase price, wireless plan and repair. Huberty also told her clients that she anticipates Apple to sell 6 million iPads this year, much higher than Wall Street's consensus of 3 to 4 million.

    Separately, Toni Sacconaghi, an analyst with Bernstein Research, in a note to investors reported by the Barron's Tech Trader Daily blog, said that Apple is on track to sell 45 to 50 million iPhones this year, which would be more than double the 20.7 million iPhones sold last year. This would bring in 45 to 50% of Apple’s total revenue, up from 30% in 2009. Sacconaghi also predicted that Apple will sell 2.2 million iPads in 2010 and 6.8 million the following year.

    Even by the lowest estimates, Apple is poised to make a wad of money in the coming couple of years. The company is already sitting on a cash pile of about $25 billion US, and sources present at the Apple shareholder meeting this week reported that Steve Jobs said he doesn't intend to use the money to buy back stock or pay dividends to investors. Instead, according to the mercurial CEO, the cash will be used for "big, bold moves" such as acquisitions of new technology. “We are a large enough business now that, in order to really move the needle, we have to be thinking pretty bold," he said.
    This article was originally published in forum thread: Analyst: Cheaper, Better iPhones in June, Apple Even Richer started by Paul Daniel Ash View original post
    Comments 49 Comments
    1. jayson9's Avatar
      jayson9 -
      What else is new...... every year a new phone, new options, new price, and screw the current owners with no-show promises........ unless they buy a new phone, and still can't get 3G in all areas. Blaaaaa, blaaaa, blaaaa!
    1. Amraam's Avatar
      Amraam -
      Quote Originally Posted by Carlos View Post

      So dose this mean there is a definite 4G coming up this summer??
      Nothing means that, until Apple say "there will be a new iPhone 4G this summer" lol
    1. Bluprint's Avatar
      Bluprint -
      As a apple employee i would be hesitant on buying anymore stocks from them. Apple's ipod, iphone, ipad is not going to win over the competition
    1. rhekt's Avatar
      rhekt -
      i predict it will be the same price
    1. milkycloud's Avatar
      milkycloud -
      Yesterday me and some old high school class mate went out for reunion dinner. There was 12 of us and it totally blew me when I found out 10 of us is using an iPhone.
    1. mofolo's Avatar
      mofolo -
      the image for this post is priceless.

      Looks like Steve just won the lottery. lol.
    1. mikerlx's Avatar
      mikerlx -
      Yeah the iPhone is very common and the mall kiosk have plenty accessories for ur iPhone. The dollAr store even sells iPhone accessories as $99 got the 3G in most peoples pocket.
    1. mastaryan's Avatar
      mastaryan -
      Quote Originally Posted by dale1v View Post
      As I do economics as a degree now, I kick myself for not buying stock when I was 10 years old.
      I bought at a little of $98. So glad I've stuck with them. Sold everything but them. Only wish I had more cash to buy more than 10 but hey I'll take it!
    1. iBwizzle's Avatar
      iBwizzle -
      Quote Originally Posted by milkycloud View Post
      Yesterday me and some old high school class mate went out for reunion dinner. There was 12 of us and it totally blew me when I found out 10 of us is using an iPhone.
      That's exactly what I mean... The iPhone will soon saturate the phone market making it unpopular. Hence, decreasing sales. And to think people are whinning for the phone to come to all carriers. I'm willing to bet only 2 out of 12 was jailbroken. Enough said.