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.