“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.
Once the iPhone halo kicks in we will see even greater Mac sales.
The iPhone should never be allowed to become 58% of the business. If so, Apple becomes as fragile as Motorola and Nokia.
The iTablet will take the advantages of the iPhone and apply them to the Mac. Apple will take off like a rocket.
“Needham analyst Wolf ups Apple”
Think I’ll wolf up brekkers.
@silverhawk … fragile? Can you elaborate because I don’t get it.
@jeff the trader.
Don’t worry about not getting it, he’s full of it. He’s just comparing names, not actually understanding the situation. We WANT apple to have the iPhone be 58% of their business. Because the iPhone as we know it will not exist in 5 years, maybe 3. It will be a full Mac. And apple is inthe business of selling high margin macs. And greater iPhone penetration means greater mac sales down the line.
Now, you can say that the iPhone is a mac right now, which it techically is, running the same basic os core – but until they run “mac” apps and the UI’s have massive convergence, they are seperate. The tablet will blur the lines, and some future iPhone will eradicate it.
Mr silverhawk can’t see the future very well
“If I were running Apple, I would milk the Macintosh for all it’s worth–and get busy on the next great thing. The PC wars are over. Done. Microsoft won a long time ago.”
–Steve Jobs, 1996
No, guys, we do NOT want the iPhone to generate 58% of Apple’s business. 58% of the smart-phone market, sure. But still only a third of Apple’s total business/profits. As silverhawk pointed out, the smart-phone business itself is “fragile” – I would have said “volatile”, but they amount to pretty much the same thing. Apple’s current model very much depends on ATT being sturdy as well as their own imaginations being “the usual”. We can trust Apple’s imaginations much more than ATT’s anything.
@silverhawk and others
The analyst’s dollar number are correct, but the 58% is wrong. Why? Because the analyst assumes between now and 2018 Apple will not introduce any new products. Thus, if Apple sticks with only its existing product line (Mac, iPhone, iPod, software), the iPhone will be 58% of the business. But we know Apple doesn’t stand still.
…and basically you can bet that Apple’s product line will grow, expand and break new frontiers and markets. Remeber Apple Computers Inc. changed its name to Apple Inc. and it’s deignation to Consumer Electronics manufacturer…
The availability of MMS will be the final nail in the coffin.