4 million iPhones to ship this year

Merrill Lynch, predicts, Apple Inc. will ship four million iPhones in 2007, followed by 12 million in 2008. Merrill Lynch warns that component suppliers for the iPhone are unlikely to see a boost in their revenues in the short-term, but in the long-term, the iPhone may help drive demand for higher-end handsets which should help suppliers.

According to a recent report from In-Stat, despite a rapid increase in the number of multimedia-capable phones, US wireless subscribers have not yet been persuaded to take advantage of these capabilities. However, if Apple can deliver on the hype, it would changes the underlying dynamics of the market, and may give a significant boost to all wireless carriers.