Oct. 9 (Bloomberg) -- Apple Inc.'s share-price estimate was increased 30 percent by Sanford C. Bernstein analysts, who cited a possible ``upside'' to profit estimates as sales of the iPhone boost earnings.

Analysts led by Toni Sacconaghi, the top-ranked computer analyst according to Institutional Investor magazine, boosted their stock-price estimate to $175 from $135, and their forecast for 2008 cash earnings per share by 3.3 percent to $5. They kept the ``market-perform'' rating.

Apple, based in Cupertino, California, sold the right to distribute the combination handset and digital music player to Telefonica SA's O2, Deutsche Telekom AG and France Telecom SA's Orange in the U.K., Germany and France respectively. In the U.S., AT&T Inc. is the exclusive seller.

``On the positive side, if Apple is able to secure what we believe are significant, near-100 percent margin payments from non U.S. wireless carriers that approach those we estimate from AT&T, and drive material unit volume of phones, there could be material upside to our earnings estimates and to the stock price,'' Sacconaghi wrote.

To contact the reporter on this story: Kenneth Wong in Berlin at kwong11@bloomberg.net.

Last Updated: October 9, 2007 05:57 EDT