Did Steve Jobs Call The Wrong Number?

1/30/2008
Roxanna Bain
Apple CEO, Steve Jobs, may need to reduce the price of their $400 iPhone to reach his target of 10 million to be sold this year.

Apple CEO, Steve Jobs, may need to reduce the price of their $400 iPhone to reach his target of 10 million to be sold this year.

This pricey little phone was launched in June of 2007 and sold 2.3 million over the holidays for a total of about 4 million to date, according to thestreet.com.

Sales will need to average 2.5 million phones per quarter over the next four quarters to reach Jobs' 10 million dollar goal; or 200,000 more than what it sold during the busy holiday season.

"The number is a challenge, but unless the global economy slows down profoundly, Apple will make it happen," says Ezra Gottheil, an analyst with Technology Business Research.

Gottheil believes Apple could shave $50 off the 8-GB iPhone's current price of $399 by the middle of 2008. Apple saw a 20% to 25% improvement in sales when it cut the iPhone price by $200 in September.

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