Analyst: Apple iPhone Sales to Double in 2009
Analyst: Apple iPhone Sales to Double in 2009
by , 10:35 AM EDT, June 18th, 2008
Morgan Stanley analysts think sales of Apple's already popular iPhone are set to explode and could double in 2009 thanks to the iPhone 3G's lower price. Consumer demand could lead to 27 million iPhones sold in 2009 for an average revenue of US$550 per unit, according to Reuters.
Analysts told investors "We believe the market generally expects a doubling of iPhone units with the lower price point ($199) and we believe this is realistic, if not conservative."
Apple's iPhone 3G will go on sale on July 11 in 22 countries, and will move out to over 70 countries by the end of the year. It includes 3G wireless data connectivity, a built-in GPS, and access to Apple's App Store and third-party applications -- features that will likely help drive up interest in the iPhone.
The second generation iPhone will ultimately be a catalyst for higher margin software sales and service revenue, according to Morgan Stanley analysts.
Morgan Stanley has raised its target price for Apple's stock from $185 up to $210. Apple is currently trading at $179.14, down 2.29 (1.26%).
If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.
Observer Comments
"...average revenue of $550 per unit" is the key to decyphering profits. Original iPhone was estimated to cost $220 to manufacture and ship to distribution channels. Many estimates have surfaced last week that put the new iPhone even lower than that. If that's the case, the new iPhone may bring in $350 per unit in profits.
If they sell 20 million in 2009, that would mean $7 Billion in profit, on top of their Mac and iPod/iTunes business.
Comments are currently closed. Please email the author instead.
Recent Headlines - Updated November 10th
- Mon, 7:20 PM
- Rumor - Apple May Update iPod touch in December
- 6:45 PM
- Product News - MacUpdate Desktop Updated to 5.0.1 with New Features, Bug Fixes
- 5:16 PM
- Apple Releases Mac OS X 10.6.2 - Guest Account Bug Fixed, Much More
- 4:12 PM
- Games - New For iPhone: Star Rangers, Air Force Supremacy, Blood Beach, More
- 2:51 PM
- Apple Stock Watch - Radio Shack Jumps 14% on iPhone Deal, Apple Up 3%
- 2:25 PM
- Games - EA Scoops Up Social Games Publisher Playfish
- 1:51 PM
- Deal Brothers - Western Digital 1TB SATA Intellipower Hard Drive: $84.99
- 10:58 AM
- News - StarHub Signs Singapore iPhone Deal
- 10:36 AM
- Hot Forum Topic - Reader Speculation: What’s in Apple’s Tablet?
- 10:08 AM
- News - Apple Kicks Off New Credit Program
- 9:26 AM
- News - Apple Launches Reserve and Pick Up Program
- 8:49 AM
- News - ikee Worm Rickrolls Jailbroken iPhones
The Mac Observer Reader Specials
- TypeStyler For Mac OS X is Now Shipping! Download The Free Fully Functional 60 Day Tryout at www.typestyler.com
RamJet Memory: Mac Pro 8-core 8GB Kit $199.99, 4GB Kits $109.99! Sale on MacBook and MacBook Pro 8GB kits $549.99! New MacBook DDR3 2GB for $49.99. iMac and Mac mini 4GB Kits for $79.99! 1TB SATA Hard Drives for $109.99! Click here
OWC: Get the Right Memory for Your Mac Top Quality, Competitive Price, Lifetime Backed Free Expert Support + Installation Videos too! MacBook & mini 8GB, iMac 16GB, Mac Pro up to 32GB. Click here
If you're using a Mac, then you've gotta check out Full Tilt Poker for Mac. This Full Tilt Poker bonus code does the unthinkable, it actually rewards!For the latest Apple products use Ciao, a price comparison website, to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate mobile phones like the Apple iPhone.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.
