Come summer, Apple (AAPL) is reportedly expected to release the 3G IPhone at $99. Along with this they will be releasing an advanced version of the 3G Iphone. Apple is expected to add new features such a Video Recording, Video Conferencing, a new sleek style, and much more. Analysts think that the $99 IPhone could increase Apple's overall IPhone sales by 25% to 69% and allow Apple to take 19% of the current smartphone market up from the 14% they currently own. The problem is that this $99 IPhone could also hurt Apple. If the plan goes through Apple would have to sell three $99 IPhones to replace the gross profits from one 3G IPhone. This could create a create a situation that would force Apple to lower its IPod price as well. I think this is a strategic decision by Apple as the more market share they gain the better the company will perform long-term. Apple continues to deliver great products and has a strong consumer base who continue to come back and purchase products so if more and more people get hooked on the IPhone it will reciprocate to higher Computer sales. Apple continues to be a premium-priced hardware maker which has performed well in the global recession posting a 16% rise in profits in the first quarter. If the Apple consumer base continues to grow however expect Apple's profit numbers to soar.
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