Ezzyme

Apple Tumbles On iPhone Price Cut; Analysts Leaving Estimates In Place

Let's take this a little farther. Say component prices are the same and they only meet projections of 10 million iPhone sales next year. Let's split the difference between the 4 gig and 8 gig pricing and say the average price cut reflected in estimated future sales is $150. That's $1.5 billion not only in reduced revenue but in PROFIT. That $1.5 billion will come directly off the BOTTOM line. In this scenario, 2008 EPS will be reduced $1.72 and at a P/E of 38 that's a $65 stock value haircut. Thank you Steve.