Filed under: Apple Financial, iPhone
Analyst Roundup: Bullish on the iPhone
UBS analyst Maynard Um says that Apple could sell 7 million iPhones in the first quarter of the year if they sell a low-cost, 4GB model, according to Electronista.
Citing "checks" with industry partners, Um claims a 4GB model is in the works, though it's unclear if it will be a regular iPhone at a lower price point, or a smaller iPhone nano device rumored to be in development. While it may cannibalize sales from the current low-end 8GB model, a significantly lower price could add 1.5 million more sales for the quarter.
Generator Research's Andrew Sheehy goes even further, projecting that Apple could sell 77 million iPhones by 2013, according to Philip Elmer-DeWitt. Sheehy has three reasons why Apple will dominate the smartphone business:
- Apple's ability to combine hardware and software, making it easy for users to consume
- The App Store's vertical platform model leads the market so far
- Smartphones are the only kind of phone that Apple makes, unlike other handset manufacturers like Nokia.
Sheehy says that, among other recommendations, Apple must broaden its offering to include higher- and lower-end units, including tablets and entry-level smartphones: All with access to the App Store.
He also says that Apple will capitalize on the paralysis brought on by a weak global economy, and use its cash to get "one or two design cycles ahead of the competition."
"When rivals start spending again, they may discover that Apple has built an unassailable lead," Sheehy writes.
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Reader Comments (Page 1 of 1)
Joe said 1:38PM on 1-14-2009
I think it's more likely Apple will soon add a 32GB model at the current 16GB price, drop the 16GB price to the current 8GB price, and drop the 8GB price to $149ish.
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colouroflight said 4:38PM on 1-14-2009
$149 from $399 would be quite remarkable. Not everyone gets it for $199 you know.
Joe said 6:12PM on 1-14-2009
colouroflight, really? Do I have to disclaim that I was talking about the advertised, astericized, subsidized price every time? Or can we act like grown-ups once in a while and resist the opportunity to correct people at every available opportunity?
This is a great example of why computer people get a bad rep.
Andrew said 2:01PM on 1-14-2009
"one or two design cycles ahead of the competition?"
they are already 2 design cycles ahead
although it lacks a flash for the camera, the app store blows everything else away.
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BabyGotMac said 2:01PM on 1-14-2009
Ever notice how closely 'analyst' resembles 'anal cyst'?
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L3 said 2:36PM on 1-14-2009
I read it as 'anal-ist,' like when Quagmire is confused about the job-opening for an 'Organist.'
jollyllama said 2:18PM on 1-14-2009
I've been playing GW for the last year through Boot Camp. Quite simply, I'm done waiting for mac ports of anything. Boot Camp works with everything, and if anything, having to reboot is an incentive not to play games too much, which quite frankly I need sometimes...
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jollyllama said 2:20PM on 1-14-2009
Stupid 1password autofilling the comment section as well as the password...
Anyway, now what I was going to say will just sound dumb.
Joe said 2:25PM on 1-14-2009
Introducing a 2800.00 laptop during a recession seemed like such a logical move.
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Jacques Lema said 2:30PM on 1-14-2009
Oh, an UBS analyst. As a resident of Switzerland paying taxes to bailout this company, I was secretly hoping they'd at least fire the useless analysts. Guess I was wrong...
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Johnny said 2:35PM on 1-14-2009
When I first read the title, I thought it said: "Analyst Roundup: Bullshit on the iPhone". That would have probably worked just as well.
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L3 said 2:37PM on 1-14-2009
I'm in.
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Bertil Holmberg said 3:18PM on 1-14-2009
Gosh, a genius, I'm flabbergasted.
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Bryan Walls said 5:18PM on 1-14-2009
It does seem to me a 4GB iPhone would save Apple all of about $5 off the cost of an 8GB iPhone to produce. How does this translate into super-cheap, high-margin iPhone for the masses?
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directeco said 8:48PM on 1-14-2009
Apple's profit on the iPhone is already very high so a phone around $99-$149 would drive more revenue where they wouldn't have any before. It would also help Apple extend its smartphone lead and make it that much harder to topple, similar to where the iPod is right now