Analyst Predictions

We've heard it all before, Apple is adding T-Mobile and Sprint to its roster of iPhone carriers, but Piper Jaffray analyst Chris Larsen and analyst Shing Yin of Citadel Securities believe 2011 is the year Apple will actually make the move.

Most analysts seem to agree that if Apple wants to compete with the growing Android Market, they will have to make their products more accessible. The days of Apple exclusivity are over, and Larsen's crystal ball says the iPhone being offered by all four national carriers will increase Apple's market share by 30 percent.

"While we remain uncertain regarding the next-generation iPhone's specs and features, we believe the most noteworthy change could be the device's ability to run on more networks, specifically Sprint and T-Mobile in the U.S.," Larsen wrote in his analyst report.

Every possible future iPhone scenario has already been theorized this year, but what about a new iPhone carrier? Starting tomorrow Sprint will be one of the last U.S. carriers to offer unlimited data plans, and with the rise of the Android Market, the days of Apple exclusivity looks to be coming to an end.

Analyst Shing Yin of Citadel Securities believes we will see an iPhone added to Sprint's arsenal by the 2011 holiday season. Out of all the analyst predictions and rumors this one seems quite plausible, however, there are no known talks between Apple and Sprint about an upcoming deal.

When asked about a possible future Apple/Sprint team-up, Sprint CEO Dan Hesse said, “What is this — like the 55th time I’ve been asked that one? Something like that. And of course, we can’t comment on any potential discussions with any of our suppliers.”

I don't know why I started following all these analyst reports, but since I did here's the latest:

Monday: Deutsche Bank analyst Chris Whitmore predicts Apple will announce an unlocked mid-range ($300 to $500) iPhone to penetrate the pre-paid mobile market share.

Tuesday: BMO Capital analyst Keith Bachman believes Whitmore is wrong because Apple will never release a low-end phone. Instead, Bachman thinks Apple will discount the iPhone 3GS to attract people on a budget.

Today, analyst Mike Abramsky with RBC Capital Markets said Apple will break tradition and not discontinue the iPhone 3GS when the iPhone 5 is announced. Abramsky said Apple is “expected” to offer the iPhone 3GS for free to attract mid-market buyers and slow the growth of the Android market.

On Monday, Deutsche Bank analyst Chris Whitmore told his clients to expect Apple to release two iPhones, one of which would be an affordable device to help Apple grab a part of the pre-paid mobile market share. But BMO Capital analyst Keith Bachman says Apple is all about making exciting high-end devices, and he doesn't see them releasing a low-end phone this year. Bachman believes that AT&T's re-marketed iPhone 3GS will be the phone Apple uses to hook budget-conscious consumers.

Deutsche Bank analyst Chris Whitmore thinks Apple should and will embrace the mid-range/pre-paid mobile phone market in 2011. Two-thirds of the 1.5 billion mobile customers worldwide are pre-paid users, and Whitmore believes Apple will try to reach these customers by releasing an unlocked iPhone priced between $300 and $500. Perhaps the iPhone 4S?

“With Nokia and RIMM struggling,” Whitmore said, “the time is right for Apple to aggressively penetrate the mid range smart-phone market to dramatically expand its market share.”

Whitmore predicts that an affordable iPhone priced around $349 will not negatively impact profitability, and will help give Apple a bigger share of the $70 billion worldwide market.