“Merrill Lynch overnight raised its price target on Apple Computer (APPL) shares to $49 from $44 after the PC maker topped the earnings per share forecast for the latest quarter late Wednesday,” Emily Church reports for CBS MarketWatch.
“Merrill analysts raised the earnings estimate for fiscal 2005 to $1.20 a share from 95 cents a share,” Church reports. “Apple’s earnings upside in the quarter ‘was entirely in iPods as Mac sales suffered from continued shortages of the G5 chip from IBM (IBM),’ Merrill said. ‘Because we believe in the halo effect of iPod, the positive impact on Mac sales may still be coming.'”
Full article here.
MacDailyNews Take: The “iPod Halo Effect” is real, but not instantaneous. People take years to buy a new personal computer. Next time they do, they will not be ignoring Macintosh and Mac OS X, especially if they’re listening to their Apple iPods. Have you seen the new iMac G5 in the flesh? It sells itself.