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A price cut on the iPhone to sell 10 million?

Apple could be forced to cut the iPhone's list price to reach the target of 10 million phones sold later this year. This is the opinion expressed by some analysts interviewed by TheStreet.com, an online financial magazine.

In particular, Ezra Gottheil, who works for Technology Business Research, to assume that a list cut of about fifty dollars could be a viaticum that will accelerate the path to reach the goal set by Jobs. "Right now," says Gottheil, "market conditions allow the cost to be reduced by $ 50. Apple has already shown that it can follow this path; when it reduced the iPhone's list price by $ 200, it saw a 20/25% increase in sales. " The reason why Apple would do well to cut the price in the weakening of the economic environment; today many feel it is an exaggeration to spend $ 400 on a phone.

If Apple, the analyst points out, does not make incentive choices to push iPhone, it may be difficult to reach the target. "Apple * says Gottheil * will be forced to sell 2.5 million iPhones for each of the remaining quarters, 200,000 more than it sold during the Christmas quarter."

In fact, this consideration by the Technology Business Research analyst does not take into account that the iPhones to be sold to reach the target of 10 million are much less.The Jobs threshold does not concern the 12 months from January 1 to 31 December, but the period from 29 June 2007 to 31 December 2008, or in 18 months. Since Apple had already sold 4 million iPhones (in six months) by the end of December, it has 12 months left to sell another six million iPhones. With the expansion to other important markets ahead, the likely launch of new models and a new season of Christmas gifts does not seem really urgent to cut the price, at least if the goal of reaching the target of 10 million as well as Apple conceived it.

And that things did not go as badly as someone supposedly points out, in the same article, Mike Abramsky of Rbc Capital who defines the results as "nothing less than remarkable in relation to the history of the launch of the phones. The 4 million iPhones are double the initial sales of Motorola's Razr (which was the best-selling mobile phone in Ndr history) ".