“Piper Jaffray said early Friday it thinks the iTunes online music store could emerge as a driver for Apple’s (AAPL) shares in fiscal 2005 and 2006,” Michael Baron reports for CBS MarketWatch.
“We believe that the Street is underestimating the impact of iTunes on two levels: hype factor and financials,” the firm told clients. “Based on Apple itself downplaying the potential growth and profitability of the iTunes Music Store, we believe expectations related to this segment are minimal.”
Baron reports, “Piper theorized that the hype factor around iTunes will grow in tandem with the installed base of iPods, Apple’s digital music player. ‘As the iPod installed base grows and the overall demand for digitally distributed content increases, we expect the Street to begin to view iTunes as more than just the cog in a wheel that drives hardware sales,’ it said.”
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