“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.
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.
california oil strike?
shouldn’t that be gold rush?
never mind me, what do i know
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Mac Beth –
I believe that you’re right. Gold rush for Cali – Oil for Texas.
MDN is quoting a reporter who is quoting an analyst. It’s difficult to follow the quotemarks. Might I suggest fewer “Barker reports”?
look who’s paying attention.
MacBeth has her history right. California Gold Rush. The Texas Oil Strike was known as Spindletop near Beaumont, Texas.
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.
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…
no you’re giving this tool way too much credit
hehe. . . you said ‘tool’
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.
hehe… usually when talking about analysts you would of thought he meant “stool”
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.
ehhhh what’s with the ad for the RNC?
Maybe referring to “California oil strike” is a comment on Apple pretending that product is scarce so they can hike the price up
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JadisOne — so get a new tower. The twin G5’s are pretty tasty. Even a dual 1.8 would be what, more than 10x as fast as your G4/400? What are you waiting for? What do you think they should have produced to make you (and the troll Sick of Pods) happy?
Sick of Pods/JadisOne:
Patience folks! When we have 2+GHz G5 PowerBooks, and 3 GHz G5 Dual PowerMacs, later this year, the drought will be over. Before that, I predict the G5 XServes will TAKE OFF beyond anyone’s expectations at this point. Apple’s been in a tough spot with Motorola not performing and IBM working to ramp up the new G5 chip. But the wait will soon be over, and music will put them in a better position to capitalize on the new products…
sick of pods… if u don’t want to read about ipods what made you accidentally click the article and then start talking about it?
u really think the ipod is making Apple late with other stuff? somehow i bet its not the same people working on ipods and macs
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MikeMo: For the machine I use, I am patiently waiting on the 3.0GHz barrier to be broken. If I am not mistaken, Mr. Jobs promised those for this summer. Since I am the boss, I want the best.
” width=”19″ height=”19″ alt=”grin” style=”border:0;” /> And if Apple continues their tradition of dropping prices when introducing new lines, I then can replace the aging G4/733 Macs in my production department with dual 2.0GHz G5s. That will definitely put some smiles on faces.
Rosy: I am patiently waiting. I agree with you on your take of Apple’s position.
It almost always is useful to read the article. If the report of a report of Fred Anderson talking at Morgan Stanley was correct, one of the “key drivers” for Apple is “portable mobility“.
Just as the Windows world is embracing stationary mobility, Apple is once again showing how visionary a company it truly is! ;^)
Sure, occasionally this site resembles iPodlounge, but the thing is, iPods really do matter. I don’t own a Mac – never have. Wanted a computer but couldn’t justify the perceived extra cost. There was a time I would have bought a dell jukebox – PCs generate a ‘how much can I get for the money’ attitude. How many mhz? How many gigs? You only have to visit Slashdot to see this. I got an iPod because I played with a friend’s. I held it and it felt great. Having got one I am going to get a powerbook. Several times I have stopped off at Micro Anvika to play and I am starting to understand OSX – Windows has always been horrible – and the keyboards and displays are amazing. Without iPod I never would have looked at Macs.
I said above that Windows sucked. All versions except this one:
http://www.deanliou.com/WinRG/
All of you who think iTunes rocks are wrong. Check out WMP on this baby.
Anybody else think this hype of ipods is getting a little overboard?
Next the pundits will be predicting that Apple is getting out of the computer business to concentrate on music…
finelinebob – Forget portable mobility… the next big thing is stationary stoppedness! … no drivers required!
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California, like Texas is a big state with diverse geography. California has it’s oil, too and in some places a lot of it – though nowhere near Texas’-size. And as California’s fields were being developed around the same time as Texas, albeit on a lesser scale.
And Alaska has its gold rush, as well.
Sick of Pods,
Mac Beth is correct; why did you bother to comment? Apple is more secretive then the Pentagon for very good reasons, namely they don’t want any bumps in their revenue stream due to people holding off on purchases, so they can’t say anything about planned poducts. Look at how rumors that the iPod Mini would come in sub-$200 led to much gnashing of teeth and second guessing about Apple’s pricing strategy, when in fact they got it exactly right in my opinion. Until Apple actually comes out with new products all speculation is simply that, speculation, and we can only discuss what actually exists, even if it isad nauseam. I don’t blame them one bit for keeping their cards close to the vest.