Apple's iPhone Air Aims to Boost Sales with $800 Pricing

Apple Inc. (AAPL.US) is gearing up for the launch of its latest iPhone model, the iPhone Air, which analysts predict could exceed market expectations. The iPhone Air, with specifications more aligned with the base model rather than the Pro version, is expected to appeal to a wider consumer base due to its lightweight and sleek design. This design innovation could potentially drive higher-than-expected sales, despite initial market predictions that had scaled back production estimates to between 10 million and 15 million units for the second half of the year.

The pricing strategy for the iPhone Air is also a critical factor. If priced around $800, the device could qualify for subsidies in the Chinese market, potentially boosting Apple's sales in this region. This strategic pricing could open up additional growth opportunities for the tech giant.

However, not all analysts share the same level of optimism. Wamsi Mohan, an analyst, expressed a more cautious outlook. Mohan noted that while the iPhone Air's design could be a significant draw, the market's expectations for its impact on sales growth are more tempered. Mohan reiterated a "buy" rating for Apple's stock, setting a target price of $250, but cautioned that the iPhone Air's success might not be as transformative as some hope.

The upcoming autumn product launch event is crucial for Apple, as it aims to replicate the stock price boost seen after the recent favorable ruling in the Google antitrust case. The event will feature the unveiling of the latest iPhone series and Apple Watch models, which the company hopes will drive further market enthusiasm and financial performance.