Analyst: iPhone Credit Rebuilding Good Will

| Apple Stock Watch

Apple reduced the price of the 8GB iPhone by US$200 this week, leaving many recent buyers with a bitter taste in their mouths. American Technology Research analyst Shaw Wu thinks the $100 store credit Apple is offering all iPhone buyers will go a long way to show the companyis good will with customers.

"We had been concerned about negative reaction from many early customers who paid $599 for the iPhone,i Mr. Wu said. "We are very pleased to see Apple do the right thing in responding fairly quickly."

He expects the credit will also help restore trust with its loyal customer base, and that the financial impact of the credit will be immaterial based on about a $50 million charge if 500,000 credits are redeemed.

Mr. Wu is maintaining his "Buy" rating and $185 target price for Appleis stock. Apple is currently trading at $130.679, down 4.331 (3.21%).

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