updated 02:20 pm EDT, Fri May 16, 2008
Munster on iPhone TAM
Analyst firm Piper Jaffray on Friday offered analysis of the recent additions of many new carriers and countries to the iPhone fold, pointing out that Apple could quadruple its total addressable market share from 153 million potential subscribers to 575 million in 42 countries. In a note to investors, senior analyst Gene Munster says the recent agreements with Orange, Vodafone, SingTel, American Movil, and Swisscom put Apple's international rollout of the iPhone eight months ahead of schedule.
Munster feels that the agreements are not exclusive, with eight of the carriers sharing four countries. This goes contrary to Apple's earlier deployment strategy, with AT&T, Orange, O2, and T-Mobile all having exclusive distribution rights in their own countries. Munster believes that this will have a positive effect on overall unit shipments, but negatively impact iPhone revenue share.
Overall, Munster sees the situation as a growth opportunity for AAPL stock, citing that share pricing will be heavily reliant on units currently in shipment. The recent announcements solidify Munster's estimate that Apple would ship 12.9 million iPhones by calendar year-end.