One of the biggest buzz of this year is about to come true. Come June 2014 and you did be able to see yet another Internet giant joining the arenaread more...
Apple to Drop the price of iPhone 3GS to 99$ ??
Morgan Stanley expects that Apple will Drop iPhone 3Gs Price to 99$ next month after the Release of the next iPhone, according to Fortune.
Morgan Stanley’s Katy Huberty raised her Apple price target to $310 per share saying that investors continue to underestimate iPhone share gains, better-than-expected iPad demand, the growing Chinese market, and increased penetration of the corporate market.
This is largely based on a proprietary Morgan Stanley/Alphawise survey that showed:
– The percentage of current iPhone customers planning to upgrade rose sharply from 18% in Nov. 2009 to 58% in March 2010. Huberty estimates that the combination of a growing installed base and a rising upgrade rate could yield 19 million upgrade units in 2011.
– She expects Apple to cut the price of the iPhone 3GS to $99. If Apple and AT&T (T) could also find a way to cut monthly service costs to $75 from about $90 today, demand for iPhones, she estimates, would increase by another 7 million units per year.Google Ads:
– According to the Alphawise survey, 16.8% of Verizon (VZ) subscribers say they are “very likely” to purchase an iPhone when and if it becomes available on their network (in the second half of 2011 in Huberty’s base case, first half in her bull case). This could add another 8 million iPhones per year.