“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.