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UBS lifts estimates on "halo 2," suggests new iPhone by spring

post #1 of 11
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Last quarter's stellar Apple sales demonstrate that the creation of a second halo using the iPhone is paying off and may be helped by a future ultraportable or new iPhones in the spring, according to a new report from UBS Investment Research.

Writing in the wake of Apple's results for the summer quarter, analyst Ben Reitzes raises UBS estimates for Apple stock to $220 and notes that the predicted halo effect manifested itself in an across-the-board jump in Apple's success with its products, particularly with Mac sales beating estimates by more than 10 percent, at 2.16 million. The higher than estimated iPhone sales of 1.12 million during the three-month period also show that the iPhone's momentum is not slowing down and is likely to spill over into the holiday season, creating an upside for investors as publicity for the iPhone encourages sales in other categories.

"We continue to believe Apple is in the process of creating another version of the 'multiplier effect,' which we call 'Halo 2,'" Reitzes says. "Apples fiscal 4Q results show that the build up to the launch of the iPhone and its ongoing excitement is driving sales of accessories, boosting retail traffic, and helping drive sales of iPods and especially Macs. As a result, we believe shares can continue to move higher into Macworld [Expo] in January."

The researcher also observes that the slightly disappointing iPod sales of 10.2 million, which represent the chief downside to the past quarter, are likely to be only a momentary setback. Customers have been waiting for new iPods and had less than a month to buy into the new line this summer, he says. iPod touch sales have been particularly affected, as many stores could not stock the player at all until the very end of the period.

Full availability of these iPods is likely to provide a surge in sales during the last few months of calendar 2007, Reitzes adds, and should be helped by multiple factors already at work. The impending release of Mac OS X Leopard, the recently updated iMac, and European iPhone introductions should help Apple meet its relatively ambitious financial targets for the next quarter, even in the face of poorer non-OS software sales and steeper component pricing.

Reitzes also goes so far as to suggest that Apple's deck may be heavily stacked for the first few months of 2008 and should drive additional growth in the first calendar quarter, noting the possibility of new ultraportable devices, gaming initiatives, and iTunes video rental services. Significantly, the UBS analyst hints that the iPhone should see a major expansion in the next few months with a refresh due before springtime, potentially reinforcing the halo effect once more.

"We expect Apple to make an announcement on additional international iPhone carriers in the coming months," he says, "and our contacts in the supply chain point toward a new iPhone model to be released by March."

The expert does not elaborate on whether the upgrade is an entirely new class of iPhone or a change to existing models.
post #2 of 11
hehe I read the title quickly and thought it said "Halo 2 on the iPhone"
post #3 of 11
Ultraportable?
Based on Intel Silverthorne?
The FULL computer in your hand-pocket?

Yes, yes, yes! We need tons for our University!
post #4 of 11
The 'ultraportable' market is massively underdeveloped. If Apple can get in there soon, they could own the market. It might even be a way to get into the enterprise.
post #5 of 11
Quote:
Originally Posted by eAi View Post

The 'ultraportable' market is massively underdeveloped. If Apple can get in there soon, they could own the market. It might even be a way to get into the enterprise.

Well put. I agree. However, I don't know if I agree with this whole "no optical drive" business, I wish mini discs would have caught on or something. CDs are too big.
post #6 of 11
Quote:
Originally Posted by kresh View Post

hehe I read the title quickly and thought it said "Halo 2 on the iPhone"

Wait till Halo 3 comes. I hear they're going to finish the fight...

...against Microsoft.
post #7 of 11
Quote:
Originally Posted by zunx View Post

Ultraportable?
Based on Intel Silverthorne?
The FULL computer in your hand-pocket?

Yes, yes, yes! We need tons for our University!

I'm hoping the iPhone gets silverthorne. But then I see the Iphone as an ultraportable.
post #8 of 11
I might purchase the new iPhone.

AT&T no longer forces you to extend your contract for another 2-years if you change the level of service, so that will be a big factor in purchasing a new phone. I'd get one now, but no use really since I've waited this long. I can wait for the next version.
post #9 of 11
Quote:
Originally Posted by eAi View Post

The 'ultraportable' market is massively underdeveloped. If Apple can get in there soon, they could own the market. It might even be a way to get into the enterprise.


I think Apple has shown many times that they don't have to "get in soon" on any specific market in order to "own it".
post #10 of 11
I would welcome unifying MacBook line. Apple has shown that it's possible to make mainstream iMac in aluminium, so MacBook in aluminium with led lcd would be nice:

11" LCD
32GB SSD (optional 64GB)
2GB RAM
GFX X3100
No optical
battery life 10h
$2599

12" LCD
80GB HDD
1GB RAM
GFX X3100
No optical
battery life 7h
$1099

13" LCD
120GB HDD
1 GB RAM
GFX GeForce 8400M
SuperDrive
battery life 6h
$1299

15" LCD
120GB RAM
2GB RAM
GFX GeForce 8600M
SuperDrive (BRD option)
battery life 6h
$1799

some slight update of 17"
13" LCD
120
post #11 of 11
What a too the point but yet misleading title lol
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