Apple (AAPL) dropped modestly after the iPhone news yesterday, which was actually less than we would have expected. Citi says buy on the weakness. Given that the new $199 price tag should radically accelerate unit growth, this seems sane. The iPhone is still irrelevant to Apple’s financial performance, but investors are obsessed with the division’s performance.
Citi reiterates its BUY on Apple (AAPL), target price $248.
Citi has raised the AAPL target price to $287. They remain aggressive buyers and love the decision by AAPL to move from a revenue share model to a traditional subsidy model for the 3G iPhone.