Analyst: Apple’s growth engine firing on all cylinders – with two more to be added in early 2007

“Apple’s growth engine, which previously depended almost entirely on the company’s enormously successful iPod digital media player, has added another ‘cylinder’ with the advent of surging Mac sales backed by ‘switchers’ — consumers exposed to Macs via the iPod,” MacNN reports.

MacNN reports, “That growth engine is set to add two additional cylinders in early 2007, however, with Apple’s rumored launch of its ‘iPhone’ mobile handset alongside the iTV [code name] media device. Piper Jaffray senior analyst Gene Munster believes that a significant addressable market remains for Apple in its iPod business, and that its iPhone and iTV will add new addressable markets within the next six months.”

“Munster says the iPhone and iTV could collectively add 15 percent to Wall Street’s calendar year 2007 revenue,” MacNN reports.

Full article with quotes analysts quotes here.

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19 Comments

  1. The iPod has been the center of all the press, but it has never been the engine of Apple’s success. It has grown to be about third of apple’s sales, but I do not think it has ever eclipsed Mac sales. However it has been the place where exponential growth has occurred. However things as the growth rate on iPods drops from unbelievable to great, the press is beginning to notice that Mac sales are also on the rise. Thought the rate of growth can’t touch the iPod, it is an incredible rate for a mature product line.

    I love to see the success of the iPod, but Apple has always been and always will be first and foremost, a computer company.

    The press may eventually discover that iPod is really Apple’s $249 computer. Dell (and others) use cheap, no profit PC’s to get people to their site where they try to sell them on an upgrade. The iPod serves the same purpose for Apple, except it has the advantage of being profitable. As much as it has become a popular item in itself, for Apple it will always be a peripheral to sell Macs.

  2. My wife is desperate to replace my big CRT TV with a flat screen TV that looks “cuter” in her living room. I am trying my best to hold her off until I see what comes out at MacWorld so I can put together an integrated system that just works. We walked into our local Apple Store last night and upon spying the 30″ Cinema display she asked, “Can that be hung on the wall?”

    MDN Magic Word: “wish” heh

  3. The true value of the iPod has been to give a positive shine to Apple, as a company, while it was polishing OS X and re-invigorating the Macintosh line with a processor transition. Had it not been for the continued positive subject for tech writers to focus on, we would have been inundated with “beleagured Apple” stories over the last five years. If that had happened, Apple might not have had the time to swing their computers into high gear, and customers may not have had the confidence to keep the faith.

  4. Surprised that MDN didn’t take issue with this “… which previously depended almost entirely on the company’s enormously successful iPod…” it bugs me when I read that myth.
    Macs first, iPod industry second, at least I hope that’s part of the priority list at Apple.

    macs have always been and will be above(mw) ipods!

    P.S. My 1st gen Nano, though roughed up (I know should have bought a better cover, next time) works great.

  5. Yup, iPod has let Apple expand. It proved Apple products are quality to the unwashed masses. Now, Apple’s stuff is a legitimate option whereas they had been practically ignored for over a decade.

    Next year is going to awesome. It makes me want mess my pants. Check that… Peterson’s pants.

  6. iPhone sales will outstrip iPods. Also it will further integrate with iLife. iMovie for movies shot on your phone, iPhoto for your photos, ical, itunes, iChat, mail, address book etc. I think the halo effect for iPhone will be bigger than with the iPod.

    Cheers,

    Tim.

  7. Tommy Boy wrote: “My wife is desperate to replace my big CRT TV with a flat screen TV that looks “cuter” in her living room. I am trying my best to hold her off until I see what comes out at MacWorld so I can put together an integrated system that just works. We walked into our local Apple Store last night and upon spying the 30″ Cinema display she asked, ‘Can that be hung on the wall?’ “

    My wife and I are thinking exactly the same thing.

  8. Hmmmm,

    I want the new “iCantwait” and the “iGottahaveit”. New from Apple — soon. LOL

    Hey, “iLike” Apple products as much as the next guy, but “iAm” beginning to think that everyone is going just a little gonzo for the new “iGottahaveit”, soon to be realeased from Apple.

    “iThink” “iAm” going to overload any time now.LOL

    “iGuess” its just that “iNeeda” go and get a break.

    Later,

    “iNorm”

  9. I used to love to watch The Munsters, although The Adams Family had more political bite.

    As far as the iPhone and iTV, well, I’m getting a clue just thinking about them…and it’s pointing away from Microsoft.

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