With Apple expected to introduce its third-generation iPad next week, a survey of consumers not planning to buy an iPad shows that 20 percent would change their minds and buy an iPad 2 if Apple continues to sell last year's model for $100 less.
Investment bank RBC upped its price target for shares of Apple from $500 to $525 on Wednesday on expectations that the company will solidly beat Wall Street estimates for the first quarter of fiscal 2012 and offer healthy guidance going into the second quarter.
After Apple's quarterly earnings failed to live up to Wall Street consensus estimates, some analysts have labeled the September quarter a "transitional quarter" for Apple, while remaining reassured that the first quarter of iPhone 4S sales will make up for the so-called "hiccup."
Though the iPhone 3GS was first released in 2009, one analyst has said Apple will continue to sell its third-generation handset after the "iPhone 5" is announced, offering it for free with a service contract or for $399 unsubsidized.
After a meeting with two of Apple's top executives, RBC Capital Markets analyst Mike Abramsky said the company's primary requirement for launching a lower-end iPhone is whether the handset would provide an "innovative, category-killer experience."
Pointing to a series of identifiable trends, as well as "build data" from Apple's Far East suppliers, investment bankers with RBC Capital Markets on Tuesday waved caution flags at rumors that an iPhone 5 won't hit the market until October.