After the announcement of the 3G iPhone and subsequent price drop to $199, predictions for AAPL are looking up. Rich Gardner for Citigroup increased his predicted price point for AAPL to $287, up from $248.
“We remain aggressive buyers of Apple shares at current levels. Apple’s decision to move from a revenue share model to a traditional subsidy model for the 3G iPhone is a significant positive because Apple receives iPhone-related cash flow sooner.”
Gardner also increased his 2009 profits by $1.5 billion, bringing his original estimate of $7.4 billion up to a sizable $8.9 billion. He upped his 2010 profits as well, albeit by less, bringing his estimates up to $10.2 billion from $9.3 billion.
In more AAPL predictions news, the Lehman Group’s Ben Reitzes brought his prediction up $32, bringing it in at $243 from $202. Also included in the Lehman prediction was the thought that Apple will sell 27.3 million iPhones by the end of the 2009 fiscal year.
These predictions are only two of a slew of increased predictions, with Needham saying that the demand for iPhones will be quadrupled by the end of 2008, and analysts from CSLA Emerging Markets predicting a huge 18 million phones sold by the end of 2008.
Will Apple be able to meet these heightened demands? Will the analysts be right? For Steve’s sake, lets hope so.