Analyst: Cheaper iPhone Will Heal the Stock
The rumored lower-priced iPhone could provide Apple’s (NASDAQ:AAPL) stock the product catalyst it has lacked thus far heading into 2013, Piper Jaffray’s Gene Munster has said. The analyst added that he felt that estimates of the phone being priced between $99 and $149 may be too low. He predicted a $199 price tag for the unsubsidized device.
“We believe it is more likely that Apple prices the phone at $149 or $199, more likely closer to $199, off contract given Apple’s history of commanding a premium to the market and believe the core competition at that price level would be $99-199 [Google (NASDAQ:GOOG)] Android devices,” Munster wrote in a note on Wednesday.
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Even at that price, the discount would be substantial, he added: “We note that the cheapest iPhone, the iPhone 4, currently costs $450 off contract and more in many countries were additional taxes are levied. We note that an off-contract iPhone 4 is ~$490 in China and $750 in Brazil, thus the sub $199 price would be a significant discount.”