S&P Equity Research reiterates ‘hold’ on Apple Computer following video iTunes+iPod reports

Standard & Poor’s Equity Research has reiterated their “hold” rating on Apple Computer, Inc. following a Wall Street Journal report stating that the company may introduce music video content to their iTunes Music Store and a video iPod by September.

“We believe the evolution of the iPod as a platform for video content was largely expected, and market speculation, we believe, started with the introduction of a color screen on the iPods last year,” the research firm said.

In addition, the research firm stated that music videos were already available on Apple’s iTunes music store. “We believe that like the music service, Apple will make money from device sales versus content sales… [Apple is] fairly valued given our view of its strong cash levels, iPod leverage.”

Related MacDailyNews articles:
AC Research analyst: Apple’s Q4 2005 guidance ‘too conservative,’ reiterates ‘accumulate’ rating – July 15, 2005
Prudential raises Apple estimates, sets target price to $55 – July 14, 2005
First Albany reiterates ‘buy’ on Apple Computer, raises estimates – July 14, 2005
UBS reiterates ‘buy’ on Apple, raises estimates, sets share target price to $54 – July 14, 2005
Apple smashes street with record revenue, earnings; shipped 6.155 million iPods – July 13, 2005

More info about Apple’s reported iPod+iTunes video talks – July 18, 2005
WSJ: Apple in video iTunes talks, may unveil video iPod by September – July 18, 2005
Cringely: Apple working on HD movie download service and Video iPod – July 15, 2005
Apple’s shift to Intel really all about Hollywood, owning the living room, and Transitive – June 05, 2005
New York Posts looks at possibility of Apple ‘iPod video’ player – May 22, 2005
Apple quietly makes video move, offers music videos via iTunes Music Store – May 19, 2005
Now with integrated video support, will Apple’s iTunes soon become iLiving Room? – May 10, 2005
Apple bundles videos with select music albums via iTunes Music Store – May 10, 2005
Apple releases iTunes 4.8; now supports QuickTime video along with contact, calendar transfers – May 09, 2005
Cringely: Apple prepping Video iTunes, Video iPod, and setting stage for iPod clones – May 06, 2005
Apple debuts online QuickTime 7 High Definition Video Gallery utilizing H.264 codec – April 29, 2005
Apple continues to lead the industry in the adoption of HD Video at NAB2005 – April 17, 2005
Will QuickTime 7’s new video codec help Apple launch iTunes-like movie and video service? – April 16, 2005
Report: Apple Computer to launch ‘Video iPod’ by 2006 – April 11, 2005
Can Apple do for movies and video what they did for online digital music? – April 06, 2005
RUMOR: Apple building satellite-based High Defintion Video Delivery system – March 22, 2005
Apple Computer will own the living room, not Microsoft – January 10, 2005


  1. Videos on iPod.
    Who cares.
    Big deal.
    Big whoop.

    I’d rather have a PDA/Phone with bluetooth, and WiFI, that played videos, played music, synched with my contacts, connected to my PowerBook as a disk drive, allowed me to surf the web, send and receive e-mail, instant message with AIM/iChat…

    Oh wait, my PocketPC phone already does all of that.

  2. The iPod video may be a moderate success, the iPod Photo as nice as it was did not spark a revolution, but analyst will call it a flop because they won’t fly off the shelfs like the original iPod did.

  3. Any iPod video doesn’t need to be massively more popular than a regular iPod, it just needs to sell enough to be able to in time bring the price down enough to make it the standard in the same way the iPod photo was. I think the addition of music videos facilitates this. Movies will take a while as it’s an entirely new market and it’s unproven as to how to deliver the content, as Jobs has said, who wants to watch a film on a 2″ screen? Music videos are short and will serve as just another extra to the whole experience just as podcasts are.

  4. How many companies out there are posting multiple hundreds of percents growth, have zero debt, and 7 billion in cash anyway. Is this like a normal thing?

  5. I’ve always thought small-screen videos were a stupid idea — who wants to watch an entire movie on a palm-sized screen? Music videos may be different, and a video iPod might catch on. If it does, will it affect the way music videos are shot — more close-ups to cater to small screens?

    Or maybe something different is in the wings. HUD-style visors are already available. Now imagine that they standardize somehow, or otherwise become cheap and commonplace. Plug a visor into your ViPod and watch a music video on a “2-meter” screen floating in space out in front of you?


  6. “…How many companies out there are posting multiple hundreds of percents growth, have zero debt, and 7 billion in cash anyway. Is this like a normal thing?…”

    No, it’s not.
    That’s why the pressure is on Apple to continue to produce. Rational people will see that this is not normal and adjust their assessments accordingly. Irrational people will either think there is no end to this or the other side of the coin… ala Apple is going out of business.

    Go figure. Apple arguably has the most advanced, most secure, easiest to use general purpose computer on the market yet all anyone seems to care about is that stupid fricking music player, which is arguably not the most advanced model on the market.

  7. theloniousMac, be nice to that stupid fricking music player. It got this person to buy 3 more stupid fricking music players (iPod minis) and 3 macintosh systems to go with them!! My first Mac was due to the iPod so don’t fricken knock it! It’s doing all us Mac owners a favor!!! And it’s cool to have your entire music collection in the palm of your hand. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.