Analyst: Apple iPod ‘akin to a new California oil strike’

“At the risk of plunging everyone into the walnut-panelled gloominess of corporate thinking, may we report that Steven Milunovich, analyst with international bankers and billionaires Merrill Lynch, sees the iPod as something akin to a new California oil strike,” Garry Barker reports for The Sydney Morning Herald.

“Sales of the players, boosted by the launch in the United States last month of the coloured iPod mini range ‘could be a $US1 billion ($A1.3 billion) business for Apple by the end of this year and $US1.6 billion by September, 2006.’ Milunovich says the iPod is not a ‘one-hit wonder’ and will bring significant numbers of Windows users into the Macintosh fold by ‘creating a halo effect that it’s OK to buy Apple,'” Barker reports. “Nothing like an analyst with a penchant for poetic expression.”

Barker reports, “Milunovich calculates that iPod and iTunes Music Store will contribute 15 cents a share to earnings in 2004, rising to 25 cents and revenue of $US2 billion in 2006. He also estimates that the iPod, G5 and future products will push Apple’s shares to $US29 this year, $5 up on the current price. Apple will retain its 31 per cent share of the MP3 market and 55 per cent share of total digital player revenue ‘longer than many think.’ he says, adding that iTunes Music Store revenue will rise to $US200 million in 2005 and $US350 million in 2006.”

Full article here.

28 Comments

  1. You mean an investor is saying something positive for Apple. This is totally amazing I am in total shock. People buy buy AAPL. And in other news it has bee official Hell has frozen over again.

  2. Who gives a crap im sick of hearing about some damn pods, big deal a great sony walkman! what about Imac? now that it has become a bunch of overpriced junk and what is apple doing to fix it? we get 10 stories everyday about some darn pod and Apples computer sales suck wonder why? pushing those slow obsolete G4s so its no wonder all you can do is talk Pods Pods Pods. Its the only thing they got right at the moment. what happen to the computer maker? I guess they gave up right along with motorola.

  3. maybe the writer is trying to make a play on Apple’s product offering that they entered a market where most thought they would never find oil and are now making a killing off it…

  4. I am not as angry as Sick of Pods, but he/she does have a point. Since Apple has been hush about new hardware and the rumor mill has had nothing to say, I hope Apple is about to drop a bomb in regards to hardware. I have had my G4/400 tower, iMac 500MHz G3, and Powerbook G3/333 long enough. I am actually primed for a new computer.

  5. The iPod is a nice money maker and a way to get their foot in the door of PC users, but Apple needs to use some of the profit from iPods to bring out the next great thing. Apple is more media centered these days right? Theres a threat from M$ with new DVDs, lets have a movie store, an apple branded media component for music, pictures, movies. I dont think a video ipod will bring much of a market, maybe a color screen to see pictures or album art, not really a big deal. Definitely a longer battery life to belittle Dells player more.

  6. Maybe referring to “California oil strike” is a comment on Apple pretending that product is scarce so they can hike the price up ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

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