“In a note to investors, Charlie Wolf of Needham & Co. said he believes AAPL will trade at $235 in the next 12 months, and will be driven to that price solely on the strength of the iPhone,” Neil Hughes reports for AppleInsider. “Specifically, he believes that the ‘explosive growth’ of the App Store will lead to a higher trajectory of iPhone adoption.
“Though the iPhone is already the most profitable portion of Apple’s business, Wolf believes it will become even more dominant for the company,” Hughes reports. “In his old prediction of a $200 trading price, Wolf viewed the iPhone as $70.18, or 35.1 percent of the stock price’s share. Now, he sees the iPhone as $134.07, or 58.3 percent of the total share price.”
“The fact that the iPhone only controls 12.5 percent of the smartphone market means there is huge potential for growth,” Hughes reports. “‘By exploiting a commanding lead in the all-important smartphone applications market, the iPhone is in a position to chalk up share gains in this fast-growing market that could surprise everyone,’ Wolf wrote.”
Full article, with Apple valuation and iPod and iPhone forecast charts, here.