Credit Suisse ups Apple target price to $140; estimates 20 million iPhones by end of 2008

Credit Suisse analyst Robert Semple today raised his target price on Apple Inc. (AAPL) from $120 to $140 per share.

In a research note to clients released today, Semple wrote that Apple’s iPhone “will elicit a superior perceived value” vs. other so-called “smartphones” because of iPhone’s technical superiority. Semple also noted that consumers’ will view iPhone as a “”hot product” and will therefore desire to own the device.

The analyst estimates that Apple will sell 5 million iPhones in 2007 and 15 million of the devices in 2008.

Apple’s iPhone is set for release on June 29th.

21 Comments

  1. I would wait and release the new iMac in July in time for school season, but not at WWDC…too much new Apple stuff for people to process…just spread it out and then release the new iPod just before Thanksgiving. The Christmas season will then be phenomenal and Apple will hit 170 or above…just fix any glitches early on. iWeb needs
    a huge feature upgrade, Garageband needs normalization and 24bit audio, iMovie and iDVD needs more themes to choose from, and iWork needs a spreadsheet/miniFilemaker to chew into Office. Include Google in many areas, focus on overseas expansion, and rule the planet. The sky is the limit…and the iPhone can get the credit for the halo effect.

  2. Apple have contracted for a minimum number of phones from their current sole assembly supplier and are/have allegedly lined up a secondary supplier.

    Anybody who doesn’t think that Tim Cook (an unsung hero in the new Apple, and its first COO in decades who isn’t a complete muppet) hasn’t got early contingency plans to get 25M units a year into the channel has got rocks in their head and – if a competitor – they deserve to get trampled on.

    Apple may have said 10M units in 2008 (or by the end of 2008: whatever he said, I don’t care), but that is typical of the “underpromise and overdeliver” version of Apple that we’ve seen for the last several years.

  3. A problem with this analyst’s possibly “irrational exuberance” is that when Apple sells “only” 15 million iPhones, they’ll say that they are downgrading Apple stock because iPhone sales weren’t what they expected.

    Nothing said about iPhone sales being 50% higher than what Apple predicted …

  4. I don’t see how anyone can predict how well this will sell because none of us know how much the phone/network access will cost. If it’s deemed too high, added to the premium price of iPhone itself, many will decide they don’t need it *that* much.

  5. Yes I can. I’ve seen the ads, heard the hype, and heard the reactions of people I know including my family.

    iPhone will indeed be as big if not even bigger than iPod.

    Sorry, all the nervousness is based on a desire to not believe what they are seeing with their own eyes.

    Wake up world.

  6. If the iMac is ready, they should ship it. Schools and students are buying computers during June and July for going back to school. And they’ve already shipped the new MacBooks; if they still want to increase desktop sales, they should ship asap.

    By the way, I think the new iPods will be announced on Sep 18, not just before Thanksgiving. The back to school promotion ends on Sep 16. Last year, the new iPods were announced the Tues before the school promotion ended, so it’s possible they could be announced on Sep 11.

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