“Apple Computer Inc. may have morphed into a niche computer player, catering largely to the creative community, but its iPod digital music player, loved by many, could be the ‘killer ap’ that pushes it out to the wider masses,” Donna Fuscaldo reports for Dow Jones Newswires. “At least that is what Merrill Lynch analyst Steven Milunovich predicts.”
Fuscaldo reports, “In a research report Monday, he said the success of the iPod demonstrates Apple’s ‘tech know-how and strong brand’ and could make the company ‘relevant again.’ And the iPod isn’t expected to be small business for Apple. Milunovich estimates iPod’s revenue to come in around $1 billion this year, contributing 15 cents to per-share earnings. By fiscal year 2006, the analyst said revenue for the iPod could double to $2 billion, adding 25 cents to the EPS.”
“Indeed, Apple has been enjoying success with its iPod line of digital music players. It latest installment, the iPod mini, which began shipping in February, saw more than 100,000 pre-orders, said Apple. The company’s iTunes pay-for-music download service has also been very popular, with Merrill’s Milunovich estimating roughly 30,000 songs were sold from last April through January at 99 cents each,” Fuscaldo reports. “‘We’re more optimistic in believing that iPod is not just a one-hit wonder that will be knocked off,’ said the analyst.”
Full article here.