“Posing the question of whether Apple is the ‘most valuable company in the world,’ Credit Suisse on Thursday initiated coverage of the iPad maker with a $500 price target, saying it believes Apple is well positioned to command a majority share of a booming tablet market expect to grow to $120 billion over the next four years,” Sam Oliver reports for AppleInsider.
“In his inaugural note to clients, analyst Kulbinder Garcha concluded that Apple should be able to deliver extensive revenue and earnings growth of 50% and 46%, respectively, over the next two years, given that all indicators suggest the company will easily sustain its competitive advantage through its integrated ecosystem of software, hardware and services,” Oliver reports. “‘[T]hree years after the launch of its first iPhone, we believe few handset vendors come close to the quality of Apple’s hardware, software, and services,’ he wrote. ‘We also expect the company’s services offering to evolve along with its device portfolio.'”
Oliver reports, “To that end, the analyst noted that the success of the iPad only reinforces the notion of increased user loyalty, which could translate to more stable market share in Apple’s handset business. As it stands, Garcha’s proprietary analysis for tablets indicates that the segment could rise to $120 billion market by 2015, and he expects Apple will maintain a share as high as 50% by that time, given its aggressive pricing, time to market advantage and a software edge.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]