With recent rumors about a smaller, cheaper, streaming-only iPhone, it’s no surprise analysts are weighing in to offer their take on the subject. After the predictions of Apple’s promising 2011, a new iPhone model targeting “the masses” with a lower price point and possibility to run off-contract surely could deeply affect Apple’s market worldwide.
As reported by Forbes, analyst Toni Sacconaghi of Bernstein Research believes the so-called “iPhone nano” (or “iPhone mini”) could expand Apple’s addressable market by six times in terms of units:
Sacconaghi says his analysis suggests a lower price phone could expand Apple’s addressable market by 6x in terms of units and 2.5x in revenue. Based on the expected size of the 2011 market, and assuming the company captured 5% of the expanded market, he calculates that Apple would get an annual profit boost of $4.50 a share.