iPhone to Possibly Quadruple Apple’s Addressable Market

by Jody Mitoma on May 22, 2008 at 11:34 am

Over the past two weeks, Apple Inc. and cellphone providers have been making a hell of a lot of announcements stating that the iPhone would be available in so-and-so Country. Just recently, France Telecom’s Orange announced they would be delivering the iPhone to 10 more countries later this year. This, including the many other recent official iPhone-selling country additions, effectively quadruples Apple’s total addressable market.

“Currently Apple’s total addressable market includes 153 million subscribers in 6 countries with AT&T, T-Mobile Germany and Austria, O2, and Orange,” analyst Gene Munster wrote in a report. “These announcements increase those numbers to 575 million subscribers in 42 countries including recent agreements with Vodafone, SingTel, American Movil, Swisscom, and Orange.”

It is being reported that analyst’s are expecting Apple to sell approximately 12.9 million iPhones this year, and 45 million additional iPhones in 2009.

“To give some context to these numbers, Apple sold 3.7 million iPhones in 2007 into a total addressable market of 148 million subscribers (or 3 percent penetration),” he explained. “Taking the recent carrier announcements into consideration, we are modeling for Apple’s penetration rate to remain at 3 percent in 2008 and double to 6 percent in 2009.”

Munster explains that if Apple begins selling the iPhone within the Chinese and Japanese markets, this would again double the iPhone’s addressable market from 575 million, to 1.1 billion, which is increadibly remarkable.

(Source: Apple Insider)

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