Analysts believe Apple gaining a lot from AT&T contracts on iPhone

Piper Jaffray analyst Gene Munster has said in a note that as per his research Apple is gaining a lot from AT&T for every iPhone contract.

As a result he has now raised his target price for Apple stock to $205. He added in his report: “While we do not know the exact details of the agreement, we conservatively estimate that AT&T gives Apple $3 per month for every iPhone customer already with AT&T and $11 per month for every new subscriber.”

His survey also found out that a lot of iPhone buyers from the company are switching from rival telecom service providers.

This means that AT&T is also gaining in the process as they are likely to steal away a lot of customers from rivals in the coming months and years.

Munster further predicted that Apple would be able to sell 45 million units of their iPhone mobile device by 2009. And he also expects the iPhone price to drop to the mid-$300 range by 2009. This is going to enhance the sales of the device massively in the coming years.