Pacific Crest analyst keen on iPhone 3G sales
Posted by Dennis Sellers 
Aug 19, 2008 at 4:18pm
Pacific Crest analyst Andy Hargreaves told clients that, based on data from the Net Applications Internet measurement firm, the Safari web browser on the iPhone is accounting for .3 percent of all web surfing in August so far. That’s double its share back in June before the iPhone 3G rolled out.
“iPhone’s rapid share gains in Internet usage suggest potential upside to current estimates and are a strong indicator of what we believe are lasting competitive advantages,” writes Hargreaves (as noted by Barron’s). “As Web-based software and services become more ingrained in our everyday working and personal lives, Apple’s emerging advantage in the mobile Internet will, in our view, become increasingly valuable.”
The analyst estimates that each incremental one million iPhone units will drive $0.28 in free cash flow per share above our current estimate. Hargreaves expects 15.5 million iPhones to be sold next fiscal year (ending September 2009) but thinks that number could be as high at 17 million units.
As for the current, fourth quarter, Hargreaves says his estimate for iPhone sales of 3.5 million units could be 1.5 million higher, based on rising browser usage, which signals to him higher sales.
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
