iPhone News Updated

3G iPhone catalyst behind Apple price target hike to US$220

3G iPhone catalyst behind Apple price target hike to US$220

The launch of Apple Inc.’s 3G iPhone next month is yet another catalyst for a stock that often needs little reason to move sharply on any given day. And Goldman Sachs is adding Apple to its Americas Conviction Buy list ahead of this development in order to capitalize on the upside potential from sharply higher projected iPhone sales in the second half of 2008.

Analyst David Bailey told clients that he continues to expect that Apple will beat its 10 million unit sales goal for 2008 (Goldman forecasts 11 million) on the back of broader global distribution and the availability of third-party applications for the popular smart phone.

“Our analysis shows that Apple will almost double its available subscriber base in calendar 2008 vs. 2007, with 100% of that growth coming from outside of the U.S. as Apple signs up carriers in more than 40 new countries in Europe, Asia, the Middle East, and Africa,” he said. This should keep Apple well ahead of the competition, Mr. Bailey added.

The analyst also expects Apple’s unit growth for its Mac computers will be three times that of the personal computer market this year. He raised his price target on Apple shares to US$220 from US$185, while maintaining a “buy” recommendation.

[Source: http://network.nationalpost.com/np/blogs/tradingdesk/archive/2008/05/23/3g-iphone-catalyst-behind-apple-price-target-hike-to-us-220.aspx]