UBS raises target price on Apple Computer, says iPod+iTunes 6 video a ‘compelling solution’

“Benjamin A. Reitzes of UBS Investment Research reiterated a ‘buy’ rating and $65 price target on Apple Computer, expecting new products to fuel the company into 2006,” Maya Roney reports for Forbes. “‘After testing the new products [iPod video, iMac G5 with Apple Remote and Front Row media software, iTunes 6], we believe that the company now has a compelling solution for using the iPod as a medium for video since its software is simple to use,’ said Reitzes. ‘We believe that Apple will expand the content choices over time as technology and partners evolve.'”

Full article here.

The New iPod with Video.  The ultimate music + video experience on the go.  Buy it now at the Apple Store. From $299. Free shipping.
The New iMac G5 – Built-in iSight camera and remote control with Front Row media experience. From $1299. Free shipping.

Related articles:
Piper Jaffray, Bear Stearns raise Apple estimates – October 13, 2005
Apple video iPod+iTunes 6 could create mass audience for video on the go, despite studios’ misgivings – October 13, 2005
Watching episode of ABC’s ‘Lost’ on 2.5-inch iPod screen surprisingly compelling – October 13, 2005
Analyst: Apple has just produced ‘the tipping point’ for entertainment content – October 13, 2005
Fortune: With video iPod, iTunes 6, iMac G5 and Front Row, Apple ready for ‘a good holiday season’ – October 13, 2005
Analyst: Unlike Microsoft, Apple has the advantage by not licensing their technology – October 13, 2005
BusinessWeek: Microsoft fumbles while Apple turns the needlessly complex into the beautifully simple – October 13, 2005
Video report: Apple CEO Steve Jobs discusses new iPod, iMac and earnings report – October 13, 2005
NBC TV shows up next for Apple’s iTunes? – October 13, 2005
Analyst: Real and Microsoft deal ‘doesn’t change the dynamics for Apple in any way, shape or form’ – October 12, 2005
Apple’s video play likely to unsettle movie, TV, advertising and retail markets for years to come – October 12, 2005
Analyst: ‘media companies will call Apple to strike deals, Front Row is Media Center done right’ – October 12, 2005
Analyst: Apple rewriting media distribution rules, more people will consider switching to Mac now – October 12, 2005
Apple and Disney usher in new media era – October 12, 2005
Apple posts QuickTime of ‘One More Thing’ special media event – October 12, 2005
Apple’s Front Row with Apple Remote and iMac G5: media center done right – October 12, 2005
Apple introduces new thinner iMac G5 with built-in iSight video camera, ‘Front Row’ media experience – October 12, 2005
Apple releases iTunes 6 with 2,000 music videos, Pixar short films & hit TV shows for $1.99 – October 12, 2005
Apple unveils new 5th generation iPod, now plays music, photos, and video – October 12, 2005


  1. Funny. Anyone that has seen Pirates of Silicon Valley will remember that Bill has said that at least one time before regarding an Apple product. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  2. And as of 03:35 EST, AAPL is back to $53.35 or roughly where it was at the close of standard business on 30/09.

    So much for the stock tanking!

    Also, AAPL is currently worth $11.5 billion more than Sony (NYSE:SNE) – which is amusing in itself – and now has a market cap worth 55% of Dell’s valuation.

    This last measurement is quite interesting, because as recently as 16/02, Apple was only worth 36% of Dell’s market cap – so it seems like karma is going to be a bitch for Michael Dell.

  3. Wow. All this iPod talk, I might just throw in my thoughts.

    First, the new iPods will sell well. Only downside is that there’s not, in my opinion, enough incentive to induce mass upgrading from current owners of 4G or even 3G iPods. Who knows how many more first-time iPod buyers there are.

    Second, according to MacNN, “Apple said its overall music business accounted for 40 percent of revenues in the quarter.” Wow. That means Apple is one hot-iPod-and-sluggish-Mac quarter away from NO LONGER BEING PRIMARILY A COMPUTER COMPANY. Should we blame it on the Osborne Effect (if you even believe in it…)?? How would this affect stock and such? I haven’t got a clue.

    Thirdly, I don’t think that the iPod as a video player thing will take off. There are to many things that don’t work. First, with iTunes-downloaded audio, it sounds just as good whether you’re listening on your iPod headphones or plugged into a gigantic movie theater sound system. Video downloads, however, will look great on a 2.5″ iPod screen but pretty pathetic on a big screen TV or even a computer monitor. Second, many people already have their own music/video collection. iTunes makes transferring audio from CD’s to iPods very easy. How do they plan on getting movies from DVD to iPod? I know that’s not the ideal usage at this point, but that’s what people picture when they hear about a video iPod. Apple may get there, but they’re not there yet.

    Lastly, while the TV show download thing is a good idea, the market is pretty limited. There will be lots of people who download Lost and Desperate Housewives, but that group will consist, almost exclusively, of people who missed watching the show on TV. Many people forgo buying a CD because they plan on downloading the music from the iTunes store. There won’t be many who forgo watching a show on TV (freely and legally) because they plan on buying the episode from the iTunes store.

    But I could be wrong…

  4. “Should we blame it on the Osborne Effect (if you even believe in it…)??”

    No, because Mac sales have been up now for each of the past 4 quarters. The Osborne (Intel) Effect has had no impact whatsoever to this point.

  5. Turtlebug:

    H.264 can encode in a variety of different resolutions. 320 x 240, no matter how good your codec, is only 320 pixels wide by 240 pixels high, which is HALF the resolution of standard definition TV. You can’t add pixels that weren’t encoded. So while the codec is great, the resolution at which the codec is applied is what sucks.

    Turns out, by “Year of HD”, ol’ SJ meant HALF-Definition, not HIGH-Definition

Reader Feedback

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