“Needham & Company on Monday increased its price target for Apple to $450, citing ‘materially higher’ sales of iPhone and iPad than were originally forecast,” Katie Marsal reports for AppleInsider.
“Analyst Charlie Wolf with Needham said in a note to investors that he has made an upward revision to his forecast, which prompted the price target increase from $375 to $450,” Marsal reports. “Wolf now sees Apple selling about 75 million iPhones in 2011, with the number growing to nearly 100 million in 2012. He’s also adjusted his model to represent the average life of smartphone ownership at just 1.5 years, as carriers have encouraged subscribers to upgrade more quickly and become locked into a new contract.”
Marsal reports, “Apple’s 15 million iPad sales in 2010 were 40 percent higher than Wolf’s previous estimate. In his new model, he sees Apple selling 30.1 million iPads in 2011, retaining 90 percent of the tablet market share, and another 46.5 million in 2012, good for an 80 percent market share.”
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