Piper Jaffray analyst Munster answers 12 Apple questions; reiterates ‘Buy’ and $250 price target

“Piper Jaffray analyst Gene Munster on Tuesday issued one of his trademark reports to address a number ‘unanswered questions surrounding the Apple story,’ such as when the company plans to next update its iPhone and the prospects for an Apple netbook,” AppleInsider reports.

“The report follows a series of similar installments dating back to May of 2006. Munster addressed 16 Apple questions last November and followed up with answers to 15 more questions in May,” AppleInsider reports..

Questions on general business operations:
• What is the current state of Apple’s business?
• How might Apple’s view the challenging economy
• How should we think about Apple’s gross margin guidance for FY09?

Mac-related questions:
• How are the new aluminum (and older plastic) MacBooks selling?
• Will Apple release a netbook?

iPhone-related questions:
• What is Apple’s current gross margin on the iPhone?
• How far are we into the iPhone’s international rollout?
• Will Apple release the iPhone in China?
• When will Apple release a new iPhone?

iPod-related questions:
• How should investors think about iPod growth going forward?

Questions on Apple’s Retails Stores:
• How many retail stores will Apple open next year?
• How will Apple stores sell the iPhone 3G as a gift during the holidays?

AppleInsider reports, “Munster maintains a Buy rating on Apple shares with a $250 price target.”

Full article here.

[Thanks to MacDailyNews Reader “Judge Bork” for the heads up.]

MacDailyNews Note: Steve Jobs, Apple CEO, October 21, 2008:

This particular downturn is not creating a market of cheaper computers. That market has existed for some time and there are parts of that market that we choose not to play in.

I think when people want a product of the class that we make, over and over again people have done the price comparisons and we’re actually quite competitive. So we choose to be in certain segments of the market and we choose not to be in certain segments of the market. And the question is is the downturn going to drive some of our customers to those lower segments of the marketplace and get to buy lesser products? And I will be surprised if that happens in large numbers and I actually think that there are still a tremendous number of customers that we don’t have in the Windows world or in the other 99% of the phone market we don’t have who would like to and can afford to buy Apple products. So we’ll see what the ratio of those two things are but we’re not tremendously worried.

As we look at the NetBook category, that’s a nascent category. There’s as best as we can tell not a lot of them getting sold. You know, one of our entrants into that category, if you will, is the iPhone for browsing the Internet and doing e-mail and all the other things that a NetBook lets you do, and being connected via the cellular net wherever you are, an iPhone is a pretty good solution for that, and it fits in your pocket. But we’ll wait and see how that nascent category evolves and we’ve got some pretty interesting ideas if it does evolve.


  1. $250 is in the bag, he’s quite right, but just don’t sell:

    – for 18 months or

    – whenever this mess blows over

    – or when enough people wake to the fact that Apple is not worth half what it was because of this recession.

  2. NeverFade,

    Price targets are almost always for 12-month periods.

    Unless you see a different time-frame explicitly specified, assume 12-months.

    I know for a fact that Munster’s is a 12-month price target of $250 for AAPL.

  3. Doesn’t Apple already have a netbook? It’s called the MacBook Air.

    Sure it’s $1,000 overpriced but hey, you got to pay for style, baby. It can fit in a manilla envelope afterall.

  4. It is nice to see a talking head that understands Apple’s value and growth. In the USA, Apple is about $1 of every $3 spent on laptops. As the iPhone halo spreads world wide, is it not clear to even the slow thinkers that Apple’s international market share is going to jump!

    Tsunami in market share! The other PC makers give and take from each other. That is the scraps that Apple does not want yet! Vista still poisoned the Windows PC well.

  5. Someone has been drinking too much Apple branded koolaid

    I can see Apple going to $250 if:

    They win some HUGE government project to outfit all desks with Macs.

    If they offer a broad range of hardware choices.

    If they invade the corporate space.

    If they provide the public with a “must have” device or software on Mac’s only that saves a lot of money or makes it and can’t be easily duplicated by competition.

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