updated 05:05 pm EDT, Mon June 9, 2008
Piper on iPhone 3G
The price cut for the iPhone 3G was deeper than expected, says analyst group Piper Jaffray. Moving the base price to $199, it is fact said to be 50 percent greater than predicted by The Street, a factor which Piper believes will contribute to high CY08 shipments of 12.9 million units. Also significant is that iPhone availability will expand from the present six countries to 22 by July 11th, and as many as 70 countries within the "next several months," according to Apple.
After today's WWDC keynote, however, Apple is said to have revealed that the majority of carrier partners will not share revenue past the initial unit sale. Instead the company is asking partners to subsidize the iPhone's price, which Piper believes is a gamble made with the expectation of compensating unit numbers. The true payoff may be in 2009, which Piper argues will be a "breakout year" for the iPhone, with a complete family of devices launching by January.