The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK ( Trefis) -- We thought it would be prudent to go back to Apple's model and see how the success of the
2. Slower decline in iPad pricing: We currently forecast average iPad prices to decline to around $430 by the end of our forecast period as the iPad is part of a nascent market segment and hence subject to heavy competitive pressures from new entrants. However, as we have seen with the Kindle Fire and the Nook, which both undercut the iPad almost to a half, the iPad's sales were hardly affected. If the iPad continues to find as many takers as it has in the past, there may not be a pressing need for Apple to decrease its prices. Apple's flagship product, the iPhone, has seen its average pricing actually increase since 2009. These factors could mean that the iPad pricing could decline at a slower rate than what we forecast. There could be an upside of 8% to our estimate for Apple stock if iPad pricing declines slowly to reach about $565 by the end of Trefis forecast period. Combine the 20% upside from our relatively conservative estimate for iPad sales to the 8% upside from slower declines in iPad pricing, and we arrive at a price estimate of $700 for Apple. Click here to find out how a company's products impact its stock price at Trefis Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.