“The world’s most valuable company could be even more valuable in the next few months. The tremendous consumer enthusiasm for the new iPhone 5S and the iPad Air and iPad mini Retina have virtually assured Apple (AAPL) of a record,” Michael Blair writes for Seeking Alpha. ” Analysts estimates put the quarter at $57 billion in revenues and $14 per share of net income, an outcome that flows from iPhone sales of somewhere in the 52 million range and iPad sales of close to 30 million.”
“A lot of the market growth has been lower priced smartphones and tablets in developing markets, but the mainstream premium market where Apple dominates continues to advance as well. At least one analyst thinks Apple’s strategy to capitalize on user engagement and developer payouts trumps market share,” Blair writes. “Charles Wolf at Needham & Company concludes that market share ‘matters very little’ and is unconcerned that Apple’s worldwide mobile phone market share is below 10% according to Gartner data.”
MacDailyNews Take: As we often said, a single customer of quality with disposable income and the will to spend it trumps nine cheapskates who spend nothing after acquiring their pretend iPhone.
“The fact is the smartphone market continues to exhibit high growth and Apple can continue to grow even while conceding a bit of market share. IDC forecasts that there will be 5 billion people using mobile phones by 2017, up from 4.3 billion this year… Mere market share of units ignores what many think is more important – market share in dollars. Volume does not equate with value.,” Blair writes. “Apple is an innovator. New products will no doubt be invented and could add to these projections. The market would only have to assign Apple a multiple of 14 to 15 times earnings to push the shares over $1,000.”
<uch more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
Hmmm, from Seeking Alpha, no less. I wonder how long it will take for Wall Street in general to think of AAPL in terms of market share dollars instead of just market share units…
Yeahbut, it’s still from Seeking Alpha…
Michael Blair, no less.
Here we go again…
$1K by when? Underestimating innovation is a mistake. Try more like $1500 by 2017( unless a split after $1200).
How many company’s split their stock this year? I didn’t hear of any, splitting is a thing go the past. Having too many shares at lower prices invites predators not unlike Icahn.
I find it very interesting that a 10% worldwide market share in a product that numbers in the hundreds of millions and is regularly replaced/upgraded by consumers is somehow not good enough. It is even more laughable when that 10% market share is associated with the industry-leading mobile device ecosystem as well as the majority of the total profits.
What a terrible situation for Apple!!
MacDailyNews Take: As we often said, a single customer of quality with disposable income and the will to spend it trumps nine cheapskates who spend nothing after acquiring their pretend iPhone.
My take: the soaking and sales pitches never stop with android or windows devices .the cheapskates are doomed to endless “offers” and upgrade paths for half ware. all you can do out of the box is look at the pretty icons with these junk phones.
This is so lame. Last year Apple was predicted to hit $1000 sometime this year. We can see where that thinking got shareholders fooled by the Andy Zaky Curse. Now with the China Mobile contract it’s going to still take 2017 to reach $1000? Where will Google’s share price be by then? $2000? $3000? Apple shareholders better just forget about Apple doing any hard-core North Face climbing like Google, Amazon and Priceline. Apple’s ascent is more like climbing the Appalachian Mountains at a leisurely pace. Apple needs to keep piling on revenue at a breakneck pace for it to move even a tiny bit upward. It’s just so frustrating to watch investors piling money into stocks barely capable of earning any revenue while Apple is deliberately ignored. I get positively sick whenever I read about Apple barely being able to capture a measly 2% of China Mobile market share while Android takes 90%. Absolutely crushing. That’s how Apple’s future is always seen.
Apple already has a P/E of 14.x and it hasn’t gotten much closer to $600. It appears there’s just no hope for Apple shareholders because Wall Street is not going to let Apple run up to any degree. Just hope for bigger dividends next year because Apple has control over that much. I feel certain that Apple has no plans at doing anything at all with that $100+ billion in overseas cash. It’ll continue to collect cobwebs faster than interest.
Apple shares will rise when average people start buying the stock and it has little to do with Wall Street. Market pressures move the market and when little Joe Investor starts taking his money and putting it into Apple stock, the price will rise. Apple is seen by the public as a niche company with little potential by Joe Public and they are often just buying their first Apple products just now. Joe Public is not an investor and even if they really like the products, they are not going to buy a premium stock at $1000.
Little Joe investor is still trying to recover from the drop when they bought into AAPL at around $700.
There are no more little Joe investors with money to buy more Apple at current price(s). If little Joes were really smart and had the money, they bought AAPL a few months back at around $400.
Little Joe investors don’t move markets when they buy shares; most typically the buy or sell at the wrong time resulting into going under water or actual losses.
Little Joe is an investor and even if they really like AAPL, they are not going to buy a premium stock at $1000.
Lame is an overstatement.
$1000 by 2017??? That is a 3+ years prediction. I would not be surprised if Amazon catches up Apple or reaches $1000 first.
By the arithmetic I can do Apple can reach $1000 IF and when either earnings per share are around $100 at a multiple of 11, or investors are willing to pay close to 20 times earnings of around $50. I see it very difficult having a multiple close to 20 for Apple shares. I see earnings increase more feasible than multiple increase, earnings close to $100?? who knows but I wish. (The earnings are yearly earnings).
ill bet laughing boy bought a lot of gold at 1700 too!
I’d like to see you climb the App Mtns at a leisurely pace, Mr. Dirtbag.
Tired of that $1000 bullshit .
Michael Blair is nothing but a BALDHEAD who wants to hold the stick from both ends – on Nov28 this BALD HEAD wrote this:
http://seekingalpha.com/article/1867911-apple-would-be-shorts-bide-your-time-apples-run-will-be-over-soon-enough