Apple Inc (AAPL)

[fmikehugo]

10:32 AAPL AppleInsider discusses yesterday's UBS note on the Apple iPhone (93.73 -0.54) -Update-

AppleInsider reports UBS researcher Tony Andersson on Wednesday ventured beyond the Mac to address the more difficult subject of the iPhone. In a note to private investors, the researcher was confident that developments in Apple's cornerstone iPod and Mac sales would carry the co upward, growing the former to 24% of the world's media player share and its share of computers by half a percentage point. Mac OS X Leopard in particular would help the Mac, he said.

However, Andersson labeled the iPhone as the real spark for Apple's flame in 2007. It would help jumpstart Apple's revs both during the June launch of the handset in the U.S. as well as towards the end of the year, when the device should make its first appearance in Europe.

This optimistic forecast, however, presented a mixed blessing from the analyst's point of view. To him, the self-same explosion of iPhone sales could potentially tear people away from the iPod, creating a squeeze as shoppers are increasingly forced to choose between one or the other.