Google ‘ready to take on Apple iPhone next year’
Google’s share price last week broke through the $600 (£300) ceiling and looks set to rise even higher, with a strong set of results expected this week and the company poised to enter lucrative new markets.
Not content with dominating the internet, the search giant is now believed to be planning to take the mobile communications market by storm. Analysts at Lehman Brothers predict that when it unveils its third-quarter results on Thursday, Google’s revenues will rise 8.6 per cent quarter-on-quarter to $2.98bn with earnings before interest, tax, depreciation and amortisation (Ebitda) of $1.8bn. For the full year 2007, Lehman predicts a 58 per cent year-on-year increase in turnover to $11.56bn with Ebitda of $7.03bn, representing a year-on-year rise of over 52 per cent. The investment bank has raised its target price for Google shares to $714.
Lehman analyst Douglas Anmuth believes that Google will launch a mobile phone in February next year that will be similar to the recently launched Apple iPhone in that it will have “an oversized screen perhaps around 3in diagonal and with touch display” plus WiFi capability. Google’s main differentiator will be on price – its phone is expected to sell at a fraction of the $400 iPhone.
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