“Demand for the iPod has not yet peaked and firms that make components for the music player remain attractive investment targets, a brokerage said,” Lisa Wang reports for The Taipei Times. “Taiwanese electronics component makers are set to take over from electronics assemblers as some of the most actively traded targets on local stock markets, riding on the craze for Apple Computer Inc’s digital music player iPod products, a securities house based in Taipei said in its latest report.”
“Strong demand for iPod around the globe has boosted the shares of Taiwanese companies that make or supply components for the stylish MP3 players over the past three months,” Wang reports. “On Taiwan’s Emerging Stock Market (興櫃市場), shares of Inventec Appliances Corp (英華達), the biggest supplier of iPod products to Apple Computer, have spiked by about 30 percent to NT$88.18 since the beginning of the year. Some question whether the momentum can be sustained. ‘We don’t think the share prices of iPod-related companies have fully factored in future growth prospects,’ KGI Securities said in a report (建華證券) released over the weekend, suggesting that shares may rise further.”
Full article here.
Geez.
I demand an iPod. How can I be happy without one? Do you want me to be unhappy? Then give me an iPod. I DEMAND it!
Just like the original walkman, the iPod will continual to sell well for years, even after the next big thing is released. It may peak at some point, but as tech becomes more advanced and cheaper, people will continue to buy iPods in all sizes just for the brand.
The peak demand for iPod-type devices will probably be around 50-60 million units/year, which – given that Apple will probably ship between 25-30 million devices in calendar 2005 – is probably a fair bet for calendar 2007.
However, even after 2007, Apple will probably continue to sell anywhere between 40-50 million units/year given that consumers will replace units every three to four years. If one assumes a gradual deflation in market value, Apple will still be dragging in around $4-6 billion/year in iPod sales come the turn of the decade and probably between $600 million and $1 billion in gross profit.
Add in sales relating to the whole of the iPod ecosystem, in terms of accessories and music, and Apple could be looking at the thick end of $10 billion with $3 billion coming from iTMS annually and $1 billion from accessories, warranties and the like by around 2007, with gross profits of around $1.25 billion annually.
So, out of everyone, I would say that the best bet in the iPod eco-system is actually Apple itself as its current valuation of $34 billion is looking distinctly underwhelming given where it will probably be in around three years.
Holy 胡扯!
MCCFR: “…given where it will probably be in around three years”.
I tell you (again):
7% share of Pc’s in 2005
14% share of Pc’s in 2006
20% share of Pc’s in 2007
Last post! (sorry, i can’t help…)
Demand my arse. If there was such a high demand, then why doesn’t KGI securities offer an iPhone app for stock trading rather than their current, pathetic Internet-Explorer Only interface?