iPhone 3GS to be $99. AAPL to be $310. iPhone 4G on more networks

Some interesting speculation out of Morgan Stanley today. Katy Huberty has revised her estimate of the Apple (NASDAQ:AAPL) stock target price up from $275 per share to $310.

Even more bullish banks are setting a top limit of a possible $400 per share for Apple, moving forward. Making Katy’s impressive estimate look rather conservative!

Katy bases her estimate on four factors :

  • Anticipated increase in iPhone sales.
  • Better-than-expected iPad demand.
  • Growth in the Chinese market.
  • Improved corporate sales.

She also predicts 61.5 million iPhones will have sold by 2011.

Those figures come by and large from a joint Morgan Stanley and Alphawise survey in which there were details of predicted increases in users upgrading their iPhone. Fairly likely with a new iPhone on the way. And even more increased consumer interest, if only Apple would launch the iPhone on other networks.

Interestingly, in the same survey she predicts that the iPhone 3GS will be dropped in price to only $99. That’s an amazing deal for what is still a pretty awesome iPhone. It’s similar to what Apple did to the price of the 3G when they launched the iPhone 3GS not so long ago.

But it beggars the question, what will happen to the lower end iPod touch, and the iPhone 3G. If they are to be phased out it means that all new iDevices are now OpenGL ES 2.0 in the graphics department, and Apple’s mobile hardware ecosystem becomes more unified again. It also means that all new hardware going forward can expect to have more fully featured graphics effects across the board as developers can focus on one flavour of OpenGL ES for games.

Apple (AAPL) stock is rising again today, and sits at $249.00 (up $7 today) after dropping quite sharply in uncertain markets last week, only to rally back a little on Friday to $242.00.

Steve Jobs also seems quite bullish in emails he is sending out today, as we already reported. Most of his emails are in reply to consumers asking questions about Apple’s plans to respond to Google’s recent keynote and Google I/O event, and the Apple bashing they did there.

So it sees quite likely that we may see some bold moves from el-Jobs at WWDC 2010. Perhaps those moves will indeed include slashing iPhone 3GS prices, ending the 3G line, phasing out the lower end iPod touch, and replacing it with a version more in line with the 16GB or 32GB versions. And even perhaps rolling the iPhone out on another network (Verizon?) or two.

Does a $99 3GS sound like a bargain to you? Or are you committed to an iPhone 4G? Let us know in the comments…

[tech.fortune.cnn.com]

Image: Morgan Stanley

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  • Steve

    Makes sense to me on the $99 for the 3GS. Strategically, it's time Apple make a strong move to rebuff Android's advance at the lower end of the market. The lack of design control over devices is both a good and bad thing for Google, it has help sales volume and cost reduction but doesn't deliver the 'perfect marriage' between hardware and software that Job's holds no secrets about.

  • Mike

    Considering I just bought a new iPhone 3GS for $300, I'd be a little disappointed. It's not like one of the things were I would have waited for the (4G?) to get the new phone, I'm happy with the 3GS and like it's look more then the 4G leaks, I'd just appreciate it if the price wasn't brought down that low…maybe $150-200?