While Phil Schiller cooled off speculation about a dirt-cheap iPhone arriving, some of Apple's...


While Phil Schiller cooled off speculation about a dirt-cheap iPhone arriving, some of Apple's (AAPL +1.2%) biggest sell-side supporters circled the wagons today. Gene Munster, while lowering his PT to $875 from $900, estimates Apple will take 50% of a market for $400+ phones he pegs at 320M units in 2013. Topeka's Brian White notes Tim Cook's remarks about China Mobile (CHL) are similar in tone to ones made about China Telecom before an iPhone deal was reached. Baird's Will Power: "...all of our checks suggest that demand remains very good."

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Comments (17)
  • Mohamed Abdirahman
    , contributor
    Comments (106) | Send Message
     
    160m iPhones in 2013? Sounds pretty optimistic as it would be around 30% or almost 40m more units more than FY2012 iPhone sales. Not sure were these will come from (US is almost saturated and Europe does not have such a strong brand loyalty). Competition is also not standing still. In fact just saw the latest phone from Sony which seems very promising, using latest technology and highest build quality. More is still to come with LG, HTC, Samsung and co to introduce their latest devices during the course of the year. In fact, Android powered phones have moved beyond the point were they could be described as laggy, cheap plastic alternatives to the iPhone. Bearing that in mind it would be difficult to see such a strong growth in the current fiscal year.
    10 Jan 2013, 07:38 PM Reply Like
  • rocback
    , contributor
    Comments (1098) | Send Message
     
    Actually, the Samsung phone is still buggy and Android as an open system is subject to malware. There is really nothing that can be done about that with Android as it will always be an open system. I am an attorney and need a secure system.
    10 Jan 2013, 09:18 PM Reply Like
  • Mohamed Abdirahman
    , contributor
    Comments (106) | Send Message
     
    rocback, Android is based on Linux which is one of the most secure operating systems, and yes, Open system. Besides that, the app downloads from the Playstore are quite safe and malware can only hit you if you install apps from untrusted sources, etc.Also, I doubt that the perceived malware (I know many people who used android for a long time and did not have a problem with malwares) would affect sales much. Windows was targeted by all sorts of malware, viruses and trojans but they still dominated.
    10 Jan 2013, 10:13 PM Reply Like
  • Piptief
    , contributor
    Comments (1315) | Send Message
     
    Do you know how many people live in China? when u find out..use that as an input into how u could get 40 million more iPhones
    10 Jan 2013, 10:51 PM Reply Like
  • lordmorgul
    , contributor
    Comments (39) | Send Message
     
    Saying Android is based on linux is no more accurate than saying IOS is based on BSD... they are both derivative works using a POSIX standard operating system and are very highly modified from their roots. That said, Linux *can be* secure, but it can also be made to be very insecure; Android is no different in that regard, and Google has erred on the less secure end for openness and flexibility with many hardware vendors. There is a price to be paid for that.
    10 Jan 2013, 11:15 PM Reply Like
  • Alex_G
    , contributor
    Comments (1116) | Send Message
     
    "Actually, the Samsung phone is still buggy and Android as an open system is subject to malware. There is really nothing that can be done about that with Android as it will always be an open system. I am an attorney and need a secure system. "

     

    BS. I haven't had malware on windows for 10 years or android for 5 years (as long as I've been using it). Apple's current stock price issues have to do with margin compression, period.
    10 Jan 2013, 11:26 PM Reply Like
  • Mohamed Abdirahman
    , contributor
    Comments (106) | Send Message
     
    Piptief: the number of people living in China would not really matter as most cannot afford a $400+ phone. The addressable market for the iPhone (those who can pay $800 for an iPhone 5) is much, much smaller and Apple already captured that market. The china mobile deal, if it materialises could add 5-10 million new phone sales if you are very optimistic in your estimation.

     

    lordmorgul: I am not sure why the openness should be a huge security issue. The different Linux versions on the PC are all open and have no major security issues.
    11 Jan 2013, 08:07 AM Reply Like
  • jasaggie
    , contributor
    Comments (78) | Send Message
     
    And this morning I read, that possibly Phil didn't say that they would not produce a low price phone, rather just that Apple's philosophy is to always produce a high quality product.

     

    Possibly we should hear what Phil said first hand, rather than a Chinese interpretation.
    12 Jan 2013, 08:35 AM Reply Like
  • june1234
    , contributor
    Comments (4354) | Send Message
     
    Despite 12 analysts including Citi and Barclays downgrading the stock 15% of the 3000 vendors at the CES show in Vegas are featuring Apple related products. I expect Apple to file bankruptcy inside a year at that rate
    10 Jan 2013, 07:54 PM Reply Like
  • jasaggie
    , contributor
    Comments (78) | Send Message
     
    june1234 Now, that's funny!
    10 Jan 2013, 08:15 PM Reply Like
  • berylrb
    , contributor
    Comments (2374) | Send Message
     
    i think that's sarcasm ;)
    11 Jan 2013, 02:43 AM Reply Like
  • alfagrl
    , contributor
    Comments (122) | Send Message
     
    Yeah, it's all doom and gloom. Is apple half full or half empty?
    10 Jan 2013, 08:28 PM Reply Like
  • Michael O'Neill
    , contributor
    Comments (474) | Send Message
     
    There are so many report of the Android platform being hit by malware and hackers. The security issues are real and cause problems to the platform. It will never be considered as a real platform for business.

     

    As for a $400 iPhone. It is reasonable to expect Apple to achieve 50% of the market at this price level. Apple is 'the phone' to have, price is the ONLY barrier to entry for 80% of the world.
    10 Jan 2013, 11:37 PM Reply Like
  • banispeter
    , contributor
    Comment (1) | Send Message
     
    what, 90% of people living in china make 400 bucks a year?
    11 Jan 2013, 02:07 AM Reply Like
  • stevereid
    , contributor
    Comments (31) | Send Message
     
    After being a Dell, Microsoft PC user for the last 15 years, and suffering through many iterations--with many long phone calls to the "experts" in India, I recently switched to an Apple Mini Mac. The difference in speed, security and lack of trouble is a real revelation.
    It is said that once an Apple customer, you never go back. I can believe it. Paying a little more for the quality--and we now have two i-phones and two ipads in our household--makes total sense to me.
    Apple will not go broke giving away too much on the margin, while others will, and it will hurt their bottom line. Go with quality.
    11 Jan 2013, 02:54 AM Reply Like
  • killpests
    , contributor
    Comment (1) | Send Message
     
    Apple is the greatest innovative company, after re-inventing the phone, now its time to reinvent the TV and move into music systems
    11 Jan 2013, 03:54 AM Reply Like
  • Michael O'Neill
    , contributor
    Comments (474) | Send Message
     
    With all this chatter about Apple, I think we need to remind ourselves they are pretty good at what they do. They could literally wipe out the likes of Samsung over night by reducing the cost of the iPhone 5 and sacrificing margin. It is clear they do not wish to do this, but rather after 4 years of capitalising the premium end of the market, and making their ecosystem and OS the only one for consumers and business alike to connect with, they have decided (just like the computers, iPads, IPods) it is time for a lower priced iPhone. This will be a superior product and retain margin, of that there is no doubt. Priced at $350 - $450 it is clear this could increase Apples smartphone sales to 400,000,000+ per year.

     

    The other manufacturers must be extremely nervous indeed. It is plainly obvious the whole world wants the iPhone. Apple's 'little brother' iPhone as we all know will be a huge hit worldwide, and will gain Apple a huge new set of customers in India, SE Asia, China where 70% of the World's population happen to reside.

     

    Apple have been very clever created a secure OS platform. The already dated Android Google copied from Apple has very little value for developers, business, and consumers. It is handy for Samsung and other phone makers to take because it is free. It is running out of steam and that is becoming pretty evident. Add to Apple's iOS the iTunes and App Store ecosystem then it is pretty clear to see there is nothing else that comes close to offering the user a similar experience. Any range of new phones, new iPads etc will just plug into this.

     

    When Samsung lose the price advantage which was really the only reason to buy one, and perhaps the larger screen size, they will really quickly become a page in the history books.

     

    12 Jan 2013, 02:06 PM Reply Like
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