UBS raises target price on Apple Computer, says iPod nano could be ‘key product’ into 2006

“UBS Investment Research raised its price target on Apple Computer (AAPL) to $64 from $59 and maintained a ‘buy’ rating on the stock based on its analysis of the 4-gigabyte iPod nano,” Maya Roney reports for Forbes.

“UBS said the 4G nano could be Apple’s ‘key product’ into 2006, with many stores struggling to keep the devices in stock,” Roney reports. “‘While we acknowledge some risks as we move closer to the ‘Intel switch’ in Macs starting next year, we believe Apple remains one of the best stories in the technology spectrum (including digital media) in terms of earnings-per-share upside potential and relative growth versus alternative investments,’ said UBS.”

Full article here.

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Bear Stearns: ‘We see Apple making further PC share gains,’ raises price target to $58 – September 23, 2005
CSFB: Apple Computer is top pick in PC hardware sector – September 22, 2005
Banc of America reiterates ‘buy’ rating on Apple, raises target price and EPS estimates – September 22, 2005
Deutsche Bank predicts Apple will sell 43 million iPods in 2006 – September 21, 2005
Apple shares up strongly, hit new all-time high on report of better than expected Mac sales – September 20, 2005
Morgan Stanley sets price target of $60 for Apple, AC Research reiterates ‘accumulate’ rating – September 09, 2005
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  1. Time Magazine is a rag. There won’t be any kind of massive recall either because most of the damage is due to customer negligence. However, Apple does need to work on making iPods a little more scratch resistant in general, they’ve been scratch prone since the original model.

  2. The nano is going to be Apple’s “key product” of 2006? The nano will do very well, but I don’t think it will be Apple’s key product next year. Think Intel-based Mac. Think entrance into vast new, yet-unannounced markets. Phones, video devices, cameras, home security networks? I don’t know, but we’ll find out. I doubt that the nano will be the star performer next year.

  3. Apple used to have many different revenue streams. Besides computers, they also had printers and Newtons.

    Today they have three: CPUs, iPods and software. Software and Other account for about 20% of Apple’s gross revenue.

    During FYE 2006 iPods will represent slightly more than 50% of Apple’s gross revenue. With revenue projections approaching $24 Billion, the iPod is certainly a “key product”.

  4. First, the article says “Key product INTO 2006” not for 2006. which means this holiday season and not the entire year.

    Secondly: for Reality Checks post. You obviously have not heard about the complaints going on. Check out the Apple discussions forum. There are thousands of them. True, the iPod has always been prone to scratches, but the nano is not of the same quality of previous iPods, especially the screens. Simply wiping the Nano’s screen with a Kleenex or a cotton cloth will leave excessive nasty scratches. Steve Jobs said himself that all materials were re-desinged for the nano and nothing was carried over from previous iPods. And yes, he said this in Time Magazine, that rag you were talking about.

    Third, Apple has already acknowledged that they have a problem on their hands. They are offering full refunds and exchanges with very little hesitation for scratched nanos. Apple Customer service has stated that “they are looking into resolving the matter.” This scratch issue is legitimate and in most cases is not due to customer negligence. I do believe there will be a recall.

    Check out the more than 500 customer complaints here:

    If you still do not believe, try doing a google search with: ipod nano + scratch to see all the recent articles relating to the issue.

  5. The iPod nano is made from polycarbonate isn’t it? The same stuff CDs are made from? They scratch far too easily too in my opinion. Regardless of the bullsh*t they spouted about CDs being indestructible, they still stop playing once you get too many scratches (or a couple of deep ones).

    It’s ridiculous there are products out there so easily damageable.

  6. 1st post..
    Why the hell is there so much talk about the nano getting scratched, all ipod’s will get scratched if you do not look after them. Go to a good camera shop, by a pack of LCD screen protectors, then cut them to size and then put them nano…. How hard can it be.
    People that make all this noise should take a step and look at themselfs and then they will see how stupid they really are ….

  7. iPods have been scratch prone since day one. Anybody that’s ever owned one knows this. Therefore, if you jam your iPod into your pocket without a case or other protection, you’re asking for it. Period. That’s just how it is. Should iPods be less scratch prone? Yeah, probably. But they’ve been this way for 4 years, so deal with it. And they sure aren’t going to recall all of them, that much I do know for certain.

  8. Okay, how can I explain this. I already own a white iPod and a mini and I understand that over time scratches and scuffs are to be expected.

    However, the new Nano is NOT OF THE SAME QUALITY as previous iPods.

    My Nano is one week old and it looks worse than my two year old white iPod.

    No, I am not cramming it into pockets or treating it carelessly. You can barely touch the thing and I mean BARELY. I tried to wipe off fingerprints with a soft kleenex and it scratched the entire screen. The Nano is made with a DIFFERENT protective covering than previous iPods and it just does not hold up. This is a big problem. This is why thousands of people are complaining. Apple knows this already and are offering refunds with no questions asked.

    So please, stop trying to blame us Nano owners and act like were all idiots that do not know how to care for our electronics.

    This is a serious design flaw and not user negligence.

  9. Hello everyone. Illusions are art, for the feeling person, and it is by art that you live, if you do.
    I am from Turkey and now teach English, give please true I wrote the following sentence: “By clicking above, you agree to the following terms and conditions.”

    Thank you so much for your future answers :-(. Sven.

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