Merrill Lynch reports ‘Apple will only ship four million iPhones this year and 12 million in 2008′ although market expectations are much higher. Monthly shipments will be around 200,000-300,000 and will ramp up to 1 million units by end of this year. Apple’s entry into the cellphone market will drive demand for high end phones beleive Nokia and Sony Ericsson. Nokia’s CFO Rick Simonson recently stated that this represents an opportunity for Nokia. Concerning any competitive threat in the market, Nokia said it would respond quickly with added-value functions and new handset models.
According to a recent report from In-Stat, despite a rapid increase in the number of multimedia-capable phones, US wireless subscribers have not yet been persuaded to take advantage of these capabilities. However, if Apple can deliver on the hype, it would changes the underlying dynamics of the market, and may give a significant boost to all wireless carriers.