Analyst: Apple iPhone to get cheaper 20% annually

Financial services firm Needham and Company has said in a report that they expect the upcoming Apple iPhone to get cheaper annually by around 20% annually over the next 10 years.

The report claimed that this would be due to the falling component prices and increasing subsidies over the years by cell service providers.

The researchers said that they believe that the subsidy will increase by $5 every year for the 10 years, resulting in an end subsidy of $150 in 2016.

Analyst Charles Wolf said: “This reduces the price of the iPhone with a two-year plan to $76 in the final year of our forecast, equivalent to about a 20 percent annual decline.”

He further said that by that time Apple iPhone sales will have reached 134 million units per year. This would account for around 7% market share.

Hmm. Predictions for a period of 10 years in the field of mobile phones? Sounds too predictive indeed.