iPhone Finds the Magic Number

Photo by Das Kaninchen

In the blizzard of numbers being tossed around concerning the much-anticipated debut of iPhone 3G, the most significant one could be the price of the phone itself. As Pacific Crest consumer electronics analyst Andy Hargreaves notes, sales of both Apple’s iPod and Sony’s PS2 gamestation saw exponential gains in the wake of being offered below $200.

Aidan Malley reports for AppleInsider on the explosive growth anticipated for new phone sales in the coming year. “The relationship [between price and sales] is shockingly consistent,” Hargreaves says. “At average prices above $200, Apple never sold more than [6 million] units in a rolling four-quarter period. At prices below $200, Apple never sold fewer than [8 million].”

Should Apple fulfill even industry analysts’ most modest sales expectations, savvy decision-making in the company’s sourcing and supply-chain business units could translate into much higher margins on the 3G models than those seen with the original iPhone, all of which adds up to very good news for Apple investors and shareholders.

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