Apple Aims for the Fences with 3G iPhone Price

6/9 - "Let Microsoft/Dell/HP reign over the commodity end of the market; Apple generates cash quite well by selling high margin products to a dedicated user base.

From a financial standpoint, that insistence on quality over quantity is an attribute that sometimes gets overlooked. Good design doesn’t get a line on the balance sheet, but if you’ve spent as much of your life as we have in front of soulless gray WIndows boxes, you can recognize that Apple’s success has less to do with just pushing units out the door, and more to do with doing things right.

What about the stock?

Down $4 today on very heavy volume (was down $7 intraday). Buy the rumor, sell the news, or something. No matter. Long AAPL."

6/10 - "Recap of Jim Cramer’s comments on Stop Trading! Monday June 9.

Apple (AAPL), Research in Motion (RIMM): While Apple might be generating enthusiasm over the release of its new iPhone; most of the excitement is already priced in.“Apple’s been a great trade in a really bad market,” Cramer said. But he added, “we’ve had a very big run. Let’s be sensitive to that.” He recommended selling three-quarters of a position in the company by the end of Monday. Cramer would buy more Research in Motion if it falls below $120."

6/10 - "Analysts are not just impressed by the faster, sleeker update to Apple Inc.'s iPhone, but the surprise change in its carrier revenue sharing agreement will drive cash flow quicker to the computer giant.

Citigroup Capital Markets analyst Richard Gardner is upgrading his price target for Apple stock from US$248 to US$287 over the news, which he estimates will increase free cash flow by US$2-billion for 2009.

RBC Capital Markets analyst Mike Abramsky said in a note to clients today that by waiving its carrier revenue sharing agreement in place of subsidies, Apple will lose higher-margin service revenue, but may see carriers drive increased volumes through compelling pricing..."We estimate Apple needs to sell 60% more subsidized handsets vs. unsubsidized to offset the loss of service revenue...$199 pricing can boost sales over 100%," he said, who maintains its "outperform" rating on Apple shares with a US$220 price target."

6/10 - "Citi is not happy about AT&T's (T) decision to subsidize the iPhone rather than engage in further revenue sharing with Apple (AAPL).

'...we remain concerned about the risk to consensus '09 EPS, as pressures on wireline margins and now upfront costs from aggressively pushing the iPhone with subsidies are likely to limit upside potential for the stock.'

"Citi maintains HOLD, target from $40 to $39...Bank of America also lowered its estimates based on guidance, although they do believe the revenue model could be a net positive in the end. Bank of America maintains BUY."