Needham raises price target on Apple Inc. to $135 from $115

“Despite likely slow initial iPhone sales due to its high price point, Needham & Co. analyst Charles Wolf believes the new gadget’s price will fall at a 20 percent rate annually due to declining component costs and rising carrier subsidies,” MacNN reports.

“‘The decline in price should accelerate demand as the iPhone invades the sweet spot of the mobile phone market,’ Wolf wrote in a research note obtained by MacNN. ‘With carrier subsidies, the iPhone should sell for around $75 in the final year of our forecast.’ Wolf is predicting sales of 135 million iPhones in 2016, equating to a 7 percent market share for an increase of $20 net to Apple’s target price. Wolf raised the research firm’s target price on Apple shares from $115 to $135,” MacNN reports.

Full article here.

Related article:
Slew of analysts up price targets on Apple Inc. – January 18, 2007

16 Comments

  1. Not at all surprising to see this price target increase. Analyst estimates going into Macworld didn’t factor in either the iPhone or AppleTV.

    AAPL is currently trading at $86.16, up $0.78 from yesterday’s close.

  2. > – With carrier subsidies, the iPhone should sell for around $75 in the final year of our forecast

    What a bright fellow! And what…ten years after that it’ll be selling at $14.99? And ten years after that…?

    > – Wolf is predicting sales of 135 million iPhones in 2016, equating to a 7 percent market share for an increase of $20 net to Apple’s target [share]price

    Yeah, and we are supposed to factor 2016 iPhone sales into today’s share price? Tell me, who’s the client of yours who has a bunch to unload this week.

  3. If you are buying a stock with a P/E multiple of 30 you’d better be thinking out 10 years. Long-term growth is the only way to justify that kind of stock value.

    Remember, a stock’s value is based on expectations of FUTURE earnings.

  4. Stock analysts can’t tell you what stocks will go for next week! Old ladies in Iowa are morea accurate than analyst. Why? Because they don’t have the motivation to manipulate the market to their own advantage that analysts do. And the American public is too stupid to listen to old ladies rather than self-interested analysts.

    Bozos

    S.

  5. when the iphone rumor was lauch we all think that it was some joke,but its time to rethink again because palm and others are going to try to copy apple but they can´t in all ways.
    note: the moto rokr was was only apple try to find the rabbit hool but they found it.

  6. The iPhone will always be more expensive than the comparable iPod contained therein. Apple will not allow it to be sold for less, thus undercutting the perceived value of the iPod.

    Unless, of course, sales of the iPhone so overwhelm the iPod line that it doesn’t matter if iPod sales dry up completely.

    But all these analysts don’t seem to grok that. They also don’t seem to grok that subsidies are not necessary to sell the iPhone. They might, if there were comparable products to the iPhone being offered for sale… but there aren’t, and aren’t likely to be any for years.

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