toggle

AAPL Stock: 102.99 ( + 0.52 )

Printed from http://www.macnn.com

UBS calls $99 Walmart iPhone unlikely

updated 12:25 pm EST, Mon December 8, 2008

UBS on Walmart iPhone

Although the Kaufman Bros. research group has called the prospect of a $99 iPhone "inevitable," such a price is actually unlikely in the near future, according to UBS analyst Maynard Um. Um is in particular responding to a report from the San Jose Mercury News, which cites the possibility of a $99 price and a special 4GB capacity at Walmart. There are several reasons this view should be considered improbable, says Um, beginning with the fact that the Mercury News cites only one Walmart worker as a source for the 4GB phone option.

It is moreover argued that the $99 pricing would be abnormal for Apple, which tends to distinguish itself as a "premium" brand with higher costs. A $149 pricetag would be more plausible for a 4GB phone, Um proposes, and in reality it may be more likely that Apple will simply move the current 8 and 16GB models into Walmart stores, mimicking its strategy with Best Buy.

Um notes that if a 4GB phone were introduced, it would likely boost unit demand, but at least in part at the expense of other iPhones, and potentially the iPod touch. FY09 pro forma EPS could in theory drop by as much as $0.27, though if Apple shipped more than 1.5 million more phones, any losses might be overcome. Sales of the new model would have to expand beyond Walmart, Um writes.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

  1. nowayoutofmymind

    Joined: Dec 1969

    +1

    Competence

    UBS analyst? After losing billions due to bad analysis of the market... they still let their analysts talk in public? Mwuahahahaaa.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this ...

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Adesso Compagno X Bluetooth keyboard

The shift from typing on physical keyboards to digital versions on smartphones and tablets hasn't been an easy for many consumers. Fr ...

toggle

Most Commented