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iPhone may bolster Apple earnings 22%

updated 05:40 pm EST, Wed November 15, 2006

iPhone, Apple earnings

Industry analyst Andy Neff of research firm Bear Stearns today responded to claims by a Chinese newspaper claiming that Foxconn will manufacture 12 million iPhones for Apple, predicting an additional $0.70 in earnings-per-share for the Cupertino-based company with an extra $6 billion in revenue. The analyst's calculations include 30 percent potential 'cannibalization' of current iPod sales as a result of customers purchasing a new iPhone instead. Neff assumed Apple would price the phone around $300 without wireless carrier subsidies when calculating the device's revenue potential, according to AppleInsider, which would fall below the PALM Treo with an average selling price (ASP) of $489 and the RIMM Blackberry with an ASP of $349. "ASPs could end up higher/lower depending on features," Neff added.

by MacNN Staff





  1. Ashari

    Joined: Dec 1969


    No way at $300

    There is no way that Apple will sell the iPhone for $300 -- they'll make it at least $349, and probably $399 for a while. I expect them to come way down, which sounds weird when talking about Apple... how are they going to make money on this if in a year the mobile company(ies) are giving them away? For instance, the original Razr was $600 when it first came out, and now the carriers are practically giving them away.

    Maybe Apple will get a cut of the carrier's monthly contract?

  1. alfredo

    Joined: Dec 1969



    Apple isn't big on leaks.

    If this is true, releasing a leak about an Apple branded phone could depress sales of MS's Zune. The timing of this news seemed suspicious. Maybe "interesting" would be a better word than "suspicious."

  1. Peter Bonte

    Joined: Dec 1969



    The Razr costs between $170 and $350 now, $300 seems like a good price. Maybe we'll see 2 models, a ultra small basic phone and a more expensive GPS-PDA combination.

  1. LouZer

    Joined: Dec 1969



    If the cell phone companies are giving away the razr, its a sunsidized (crippled) version tied to the carrier. Apple's won't be carried by anyone (since they all have visions of music download services) and will cost full price. Of course that price will also depend on the features of said mythical device, and what kind of real demand there is for yet another cell phone device. (Oh, right, its from Apple, so it will be the bestest ever cell phone and, even if no one else gets it, Apple fan-boys will stand in line to buy them up).


    Joined: Dec 1969



    I'll be in line! But I will still buy an iPod too unless the iPhone has a standard dock connection to connect to my car.

  1. jcatma61

    Joined: Dec 1969


    Yeah, baby...

    I'll buy one in a heartbeat. My Blackberry experiences with the Mac are horrible! And I really hate my PocketPC phone.

    OK. So we have 12m units going to production, and the patent for the touchscreen. Any further evidence that iPhone will take on "Palm-like" functions? What OS?

    Do we think Apple will simply pave the way with its own sync-to-Mac-apps like iPod already does? That, frankly would do it for me. A couple extras like a world time clock and some third party reinvention of a MS Office (or iWork) plugin for iPhone would make it a killer.

    Who needs 99% of the c*** apps that are out there for PocketPC, anyway?

  1. Grrr

    Joined: Dec 1969



    Yet more 'analyst' BS.. Give us some REAL news!

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