Citing the iPhone’s high margins and its first mover advantage in the smartphone market, Sanford Bernstein analyst Toni Sacconaghi raised his target for Apple stock up to $185, up from a previous target of $165.
Sacconaghi, though, notes that if Apple wants to continue increase the iPhone’s worldwide market share, it still needs to make the iPhone more affordable and issue a non-data plan for the device as well.
We, however, disagree.
The iPhone 3G is currently available for $99, which is relatively cheap for a smartphone. And as for a non-data plan for the device, what’s the point of having the iPhone if not for the data? Otherwise, why not just get an iPod Touch? Cheaper data plans, though, would be a welcomed surprise, but I don’t think you can get rid of them completely because how else would cell carriers make their money back on the high subsidies they pay to Apple for each and every iPhone sold?