CLSA Emerging Markets analyst Jenny Lai claims that Apple may have set themselves up to sell nearly 18 million iPhones this year alone. According to her, the combination of a vastly increased market, lower price, and expectations of increased performance will put Apple in a position to ship well over their goal before they reach their deadline.

“The higher expectation on the 3G iPhone reflects attractive prices and a broader distribution channel (availability at ~70 countries),” wrote Lai. “The newly added white color for the 3G iPhone also bodes well to consumers.”

The pricing strategy falls in line with that of Motorola’s Razr, according to Lai. While it didn’t enjoy success at it’s higher prices, it dropped to $200 in 2005, after which sales immediately took off. Lai thinks that the same will be true for Apple’s iPhone.

Jenny Lai said she expects the new iPhone 3G to be in short supply around launch day due to shortages of some mechanical components, but said shortages were resolved within a month of their occurrence, so stock should go back up afterward.

Posted on June 12th, 2008 by admin
Filed under: iPhone News