Piper Jaffray today reiterated their “outperform” rating and $100 target price on Apple Computer and said that the possible introduction of a $500 iMac would accelerate the “halo effect” around the company.
Several Mac rumor sites have reported that Apple may introduce a “Headless iMac” priced in the $500 range on Jan. 11 at Macworld Expo.
Forbes reports, “Piper Jaffray said, ‘Apple has made no comments related to the speculation.’ Piper Jaffray said it views the potential introduction of a $500 iMac positively, as ‘we believe it would appeal to many potential ‘switchers’ that would likely not make the move at a $1,299 price point, but would consider a $500 product.’ Piper Jaffray said the move would accelerate the iPod halo effect (i.e., the notion that strong sales of iPods will spill over to sales of Macs), which is currently estimated at 13%. The research firm currently estimates 2005 and 2006 earnings per share for Apple of $1.52 and $2.17, respectively.”
Full article here.
Related MacDailyNews articles:
Rumored ‘Headless iMac’ would be radical departure from Apple’s usual high margin strategy – December 30, 2004
Headless iMac for $499? Please, Apple, let it be true! – December 29, 2004
RUMOR: Apple to debut $499 ‘headless iMac’ at Macworld Expo on January 11 – December 29, 2004
Inexpensive ‘Headless iMac’ could hook Windows users who love their iPods on Mac OS X – December 29, 2004