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Apple's Needs To Cut Prices On The iPhone

Apple CEO Steve Jobs will need to work some magic to hit his sales target of 10 million iPhones this year. Since the iPhone's launch in June, Apple has sold about 4 million devices, including 2.3 million during the important holiday season. To reach the 10 million mark, it needs to average 2.5 million phones in sales a quarter over the next four quarters -- or 200,000 more than what it sold during the big holiday season.

Some analysts say Apple will have to cut deals with more phone carriers outside the U.S., upgrade the iPhone and most importantly, drop the price in order to reach its ambitious sales target. Apple's sales efforts have been stymied by a sour economy that could put these pricey $400 phones beyond the reach of some consumers. There's also the problem of some 1.7 million "missing" phones -- the difference between phones that were sold by Apple and those that were activated by AT&T, the telecom carrier with exclusive rights to the iPhone.

The Street

Posted by | Wed, Jan 30, 2008 - 08:04 AM