BofA survey sees PC to Mac switcher potential ‘based on better media capabilities, virus protection’

“Banc of America Securities upgraded Apple Computer to ‘buy’ from ‘neutral’ and raised the target price to $85 from $75. ‘The focus of our more-positive view is CPU growth from both the demand and supply side,’ Banc of America said. ‘We believe that Apple can capture 3.5% or more of its iPod installed base, driving 16% CPU growth in 2006, versus our previous estimate of 10%.’ The research firm said each 1% share point is equal to 5 cents in 2006 earnings per share. Banc of America raised its 2005 and 2006 earnings-per-share estimates on Apple to $1.87 and $2.16, respectively, from $1.64 and $1.95. ‘Despite increased revenue from lower average-selling-price products like Mac mini and iPod, Apple continues to have strong operating leverage,’ Banc of America said, adding that the Mac mini should help the company expand customer reach. Banc of America also conducted a survey that indicates a strong brand appeal in converting from Windows systems to Macs ‘based on better media capabilities and virus protection,'” Forbes reports.

Full article here.

Related MacDailyNews articles:
Apple execs now see ‘iPod Halo Effect’ clearly paying off with higher Macintosh sales – January 13, 2005
The Motley Fool: Windows viruses, Apple iPod’s ‘Halo Effect’ may drive switch from Windows to Mac OS – September 21, 2004

2 Comments

  1. My iPod (40GB) got me into an iMac 20″ in November 2004. My parents will be on board with a Mac mini in 2005. Two of my coworkers upon seeing the Mac mini committed to purchasing one in the next 90 days. The third employee *wants* one. Another employee I work with told me today he is considering switching to a Mac because of he virus/malware problems in Windows. When I told him I had switched in November he immediately quizzed me on the platform. Of course, I did my part and pointed him to some good resources so he can determine if he is a good candidate for a switch (he is).

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