Shares of Apple set an all-time high on Tuesday after the speculation that the company's iPhone will be a hit because of its superior technology.
The iPhone, a combination cellular phone, digital music player and Web browser, will go on sale June 29. Robert Semple of Credit Suisse said consumers will "trade up" to the device because of its technology, multiple uses and trendiness. Those factors will overcome the $500 price tag, he said. According to him Mac operating system is the great differentiator in the iPhone, establishing an entirely new set of features and capabilities unavailable to current mobile phone customers today owing to the poor quality of existing operating systems.In his view, iPod buyers made a similar decision when buying the music player.
It is estimated that 5 million iPhones will be sold this year, and 15 million, worth $2.2 billion in revenue, in 2008. Apple has raised its price target to $140 per share from $120, implying the stock will rise more than 15 percent in the next year.
Shares gained 69 cents, to $122, and peaked at $122.68
The iPhone, a combination cellular phone, digital music player and Web browser, will go on sale June 29. Robert Semple of Credit Suisse said consumers will "trade up" to the device because of its technology, multiple uses and trendiness. Those factors will overcome the $500 price tag, he said. According to him Mac operating system is the great differentiator in the iPhone, establishing an entirely new set of features and capabilities unavailable to current mobile phone customers today owing to the poor quality of existing operating systems.In his view, iPod buyers made a similar decision when buying the music player.
It is estimated that 5 million iPhones will be sold this year, and 15 million, worth $2.2 billion in revenue, in 2008. Apple has raised its price target to $140 per share from $120, implying the stock will rise more than 15 percent in the next year.
Shares gained 69 cents, to $122, and peaked at $122.68
No comments:
Post a Comment