View this article at: http://dev.macnn.com/articles/08/06/10/needham.on.iphone.3g
Tuesday, Jun 10, 2008 11:00am
Needham: iPhone demand to i...
Demand for iPhones is set to shoot up dramatically with the introduction of the iPhone 3G, claims the Needham & Co. analyst group. The firm notes that based on its 2007 Harris Interactive survey, it believes that Apple's 50 percent price cut (to as low as $199) should multiply demand by at least four times current levels, and likely more based on a beginning availability in 22 countries with an expansion to 70.

Needham is also optimistic based on Apple's commitment, through features such as Exchange support, to fighting off business competitors such as BlackBerry and Windows Mobile phones. In fact the only major obstacle to Apple profit is said to be macroeconomic, with a reduction in personal spending triggered by credit crises in the US and global jumps in the cost of food and oil. An EPS of $5.25 is now being predicted for FY08, a slight reduction from $5.35. FY09 EPS should be $6.70 however, and a $235 price target is being set for the next 12 months.