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The frenzy of demand for Apple Inc.’s (NASDAQ:AAPL) new iPhone since it went on sale in the U.S. last Friday has driven sales, average price and margin expectations at Goldman Sachs higher. The smartphone is another example of how Apple can bring dramatic chance to an industry, analyst David Bailey said in a research note earlier this week.

He expected iPhone sales during its first weekend would be around 350,000 units, but thinks actual sales may have been double that.

Others said the sales goal at Apple and on Wall Street was 1 million phones. Nonetheless, Mr. Bailey raised his iPhone forecast to 5.25 million for 2007 and 12 million for 2008, up from 4 million and 10.5 million respectively.

He maintained his “buy” rating and US$135 price target on Apple shares, noting that there is potential for all of the company’s key products in the next couple of quarters, particularly the iPhone and Mac.

Source: iPhone Sales Double Goldman Sachs Forecast