Apple could be selling up to twice as many iPhones if it weren’t bound to exclusive contracts with wireless carriers, according to Morgan Stanley analyst Kathryn Huberty.
In a research note, Huberty said Apple could see its iPhone market share rise to an average of 10 percent in the top six iPhone markets if it signed agreements with multiple carriers to sell the popular device. The iPhone currently has four percent of the smartphone market.
UBS investment research analyst Maynard Um agreed that the iPhone should see more sales when Apple’s exclusive deals with AT&T and international carriers end. Maynard upgraded Apple stock from “neutral” to buy and raised his target price on the shares from $265 from $170, while Huberty pegged the stock at $210 a share.
Time To Buy a New iPhone
Given analyst expectations, that means the iPhone’s sales could skyrocket in 2011, when most of Apple’s exclusive deals end. One example is Asia. When the exclusive deals with Asian carriers expire in 2011, consumers could purchase an additional 20.3 million iPhones. That’s a significant number, considering that Apple sold about 5.2 million iPhones globally in its fiscal third quarter ended June 27.
What’s more, Apple’s iPhone margins appear healthy. Um said consumer demand does not appear to be moving toward the less expensive $99 3G device. He predicts Apple will enjoy 36 million iPhone shipments in 2010 and 40.5 million in 2011.
Considering that some consumers may be ready to trade in first- or second-generation iPhones in 2011, the future for Apple looks bright. In fact, Um expects at least 20 percent of the 2010 shipments will be from repeat buyers.
Neither Apple nor AT&T could immediately be reached for comment.
A CDMA iPhone?
As Current Analysis analyst William Ho sees it, Apple could surely sell more iPhones if it didn’t have an exclusive deal…