Analyst: iPhone 'Likely the First of Many Future Cell Phones'

American Technology Research analyst Shaw Wu also chimed in with his thoughts on the iPhone on Wednesday, issuing a report in which he noted: "We believe this is the first of many cell phones from Apple, with Apple having the potential to revolutionize the space. We would not be surprised to see simpler cell phones in the future at much more aggressive price points. We believe Apple will likely follow its iPod strategy, which is to start out at the high end and then trickle down to mid-range and low-end [devices]."

He added: "We believe partnering with Cingular is the right move and a less risky strategy, as opposed to an MVNO [mobile virtual network operator]. Arguably, Apple has less control over the experience, but it will stick with its core competencies -- making and marketing the best hardware and software -- while Congular will handle the service and billing."

Of Apple TV, Mr. Wu wrote: "We believe it is positioned to be a surprise hit, similar to the iPod shuffle. We find its US$299 pricing with 40GB hard drive particularly attractive and likely to attract volume."

The analyst reiterated his "Buy" rating but left his $99 price target intact.

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