Comments on: Breaking: How Wall Street Is Reacting to Apple’s WWDC; Apple 3G iPhone For $199 Starting July 11th; Other Features

By: Amit Chowdhry

Amit Chowdhry — Mon, 09 Jun 2008 22:56:03 +0000

The price definetely helps, but AT&T requiring a 2 year contract for that price doesn’t help.

By: raman kandola

raman kandola — Mon, 09 Jun 2008 21:51:06 +0000

AAPL’s I-phone would easily be able to sell over 30 million unit in less than 36 months. This is a big segment which would bring a big dent for companies like Motorola, Nokia, etc.

I-Phone should easily cross the 15 million mark by the end of this year.

By: cyruswen

cyruswen — Mon, 09 Jun 2008 20:20:19 +0000

AAPL’s price drop is primarily caused by the unexpected dramatic price drop in the 3G version.

Nonetheless, I believe Apple can withstand this strategy because:

1) it is now open to 3rd party applications and will get a healthy 30% cut of those applications’ sales;

2)Those apps has received astonishing acclaims, bringing convenience into the lives of gamers, musicians, sports fans, entrepreneurs and even the protective parents. Hence the potential revenues in point 1).

3) Additional to the standard ‘price drop = higher sales volume’, greater iPhone sales translates to more sales in other Apple product areas, since their convenience are all intertwined by products such as mobileme (the new .mac) and time capsule.

All-in-all, if today’s dip is mainly based off of the perception (lower future expected earnings) of this price cut, then I see an opportunity.