The iPod Nation

In expectation of increased revenue due to the imminent iPhone 3G, investment banking firm Morgan Stanley has increased it’s price target projections of Apple’s stock from $185 to $200 per share. Their increase comes out of the speculation that iPhone sales will double with the introduction of the new iPhone 3G next month. They believe that the new low pricing will serve to further increase the demand for the iPhone, while at the same time driving up sales to and estimated 27 million units by the end of the 2009 calendar year.

-Jameson

[Source: iLounge]

According to research done by NPD, he sale of iPod’s rose in May by 11.6% from what they were last year. This comes after an increase in sales of 14.6 percent in April. Fortunately for Apple, this was ahead of the 2% decline that Apple was expecting. Lehman analyst Tim Luke pointed out that this rate of sales is likely related to the shortage of first generation iPhones due to Apple’s imminent release of the iPhone 3G. He said that it is expected that iPod sales will weaken as the release of the iPhone 3G draws closer.

-Jameson

{Source: iLounge]