Wall Street analysts predict the upcoming iPhone from Apple may give the company an incremantal 70 cents per share earnings and $6 billion in revenue for 2007:
"Extrapolating the news reported by Commercial Times in Taiwan (of Hon Hai shipping 12 million Apple iPhones in the first half of 2007), we ran some numbers to get a sense of the incremental impact," Bear Stearns analyst Andy Neff wrote in a research note to clients Wednesday morning.
The analyst, who had been modeling the Cupertino, Calif.-based iPod maker to earn $3.07 per share on $24.5 billion in revenue during 2007, said sales of the new device could add an additional $0.70 in earnings-per-share and $6 billion in revenue.
"Our estimates include 30 percent potential cannibalization of total (current) iPod unit sales by iPhone introduction," he wrote.
The analyst assumed Apple would price the phone at about $299, without wireless carrier subsidies.