Citing the iPhone’s high margins and its first mover advantage in the smartphone market, Sanford Bernstein analyst Toni Sacconaghi raised his target for Apple stock up to $185, up from a previous target of $165.
Sacconaghi, though, notes that if Apple wants to continue increase the iPhone’s worldwide market share, it still needs to make the iPhone more affordable and issue a non-data plan for the device as well.
We, however, disagree.
The iPhone 3G is currently available for $99, which is relatively cheap for a smartphone. And as for a non-data plan for the device, what’s the point of having the iPhone if not for the data? Otherwise, why not just get an iPod Touch? Cheaper data plans, though, would be a welcomed surprise, but I don’t think you can get rid of them completely because how else would cell carriers make their money back on the high subsidies they pay to Apple for each and every iPhone sold?
August 4th, 2009 at 6:38 pm
I really don’t think you should disagree. I think Toni is right on and you are missing a situation like mine. I don’t have a big budget for a data plan so you are saying you want me to get an iPod Touch plus a cheap cell phone? Nice. Guess what, I only want to carry one device. For my budget, I’d like simply to buy an iPhone and use the wonderful data features only when I’m on wifi. Considering the percentage of my life that is spent at home and at work — I’m covered the vast majority of my day. Oh yes, and another thing. At least for now, the iPod Touch does not contain a GPS or video camera, features I’d dearly love.