An analyst has predicted that the iPhone could eventually rival the Mac range as Apple's primary source of income.
American Technology Research analyst, Shaw Wu made the prediction in his investment note, saying that the iPhone could eventually add up to $20 billion (£10 billion) to the firm's revenues.
"[While the] iPhone is a relatively minor contributor today, at only three to four per cent of revenue, we believe it has the potential to become a very significant driver over the next two to five years," Wu wrote. "We envision iPhone one day becoming as large as the current Mac business."
Maintaining his buy rating for the vendor's stock and upping his target price to $220 a share, Wu said that he predicts Apple will sell some 11 million iPhones, rising to 17 million in 2009, with a total of 31.6 million shipped.
"We believe there is still room for Apple to exceed our forecast depending on a broadening product portfolio, new carrier agreements and continued adoption of unlocked devices," Wu added.
"We expect iPhone adoption will see an acceleration in the second half of 2008, and beyond with 3G, a broadened product portfolio, additional carrier relationships, native exchange support and more applications.
Apple's current share price is $178.33.