Apple reaffirms 10m iPhone sales target for 2008

Apple shares rose 3.7% in after hours trading yesterday, building on a 3.2% rise during the day, when their CFO reaffirmed the 10m iPhone sold by end 2008. This is quite contrary to many other reports and blogs which have suggested it will fall well short – maybe only 7.5m sold. This has been fuelled by reports that Apple has scaled back on component orders – but, of course, this could just as easily be because of specification changes. On March 6th Apple will announce new business-friendly/Blackberry-type features for the iPhone as well as opening up the iPhone to outside developers.

Unlike last year when Apple was the BEST performer in the Holway Portfolio (up 130% - although I did sell half my holding at the point it had doubled) – this year it is the worst (down 38%). Apple, and its iPhone in particular, is a pretty good barometer of the likely health of the consumer tech market (particularly in the US) and is always referenced in my Beer Syndrome discussions. See Beer Syndrome Part 3 for the latest instalment.