UBS analyst sees iPhone creating "halo 2" for Apple
Apple, Inc.'s launch of the iPhone is the catalyst for a second halo effect that will spur the company's core iPod and Mac businesses, says analyst Ben Reitzes of UBS Investment Research.
The researcher's note to investors in the wake of Apple's Q307 report observed that Apple's high-intensity promotional campaign for the iPhone was likely to repeat the effect the iPod has had on the Mac maker's computer sales in the near future, luring customers into stores once again and in some cases persuading them to buy the very iPods that were responsible for the previous halo.
"We believe investors should focus on Apple being in the process of creating another version of the 'multiplier effect,' which we call 'Halo 2,'" Reitzes said. "We believe 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."
Worries about potentially low iPhone sales were "overblown,'" he added, noting that Apple was able to sell its new cellphones far faster than AT&T could activate them during the initial 30 hours and that the European iPhone launch details, plus Apple's recently updated MacBooks, would help the company grow through the end of the year.
Reitzes also emphasized that upcoming product releases were wild cards that Apple could play to its advantage and beat estimates. Mac OS X Leopard's introduction in October would be a clear factor, he said. But it could be unknown devices released over the summer, rather than currently publicized releases, that drove sales beyond current expectations.
"We are particularly excited about a possible iMac redesign," he wrote. "In addition, we continue to believe Apple may be working on some kind of 'ultra-portable PC' or some kind of device that can bridge the gap between media playing, basic wireless computing needs, and even some type of gaming."
The analyst also predicted that sweeping changes to Apple's staple iPod lines could reinforce the electronics firm's growth. A video iPod with a large touchscreen and iPod nanos with increased storage were probable, he claimed. Additional iPhone models and iTunes movie rentals weren't anticipated but were mentioned as possible boosts to Apple's profits if they appear in the near term.
UBS reflected the positive outlook with a new "buy" rating and raised the target share price from $160 to $175.
The researcher's note to investors in the wake of Apple's Q307 report observed that Apple's high-intensity promotional campaign for the iPhone was likely to repeat the effect the iPod has had on the Mac maker's computer sales in the near future, luring customers into stores once again and in some cases persuading them to buy the very iPods that were responsible for the previous halo.
"We believe investors should focus on Apple being in the process of creating another version of the 'multiplier effect,' which we call 'Halo 2,'" Reitzes said. "We believe 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."
Worries about potentially low iPhone sales were "overblown,'" he added, noting that Apple was able to sell its new cellphones far faster than AT&T could activate them during the initial 30 hours and that the European iPhone launch details, plus Apple's recently updated MacBooks, would help the company grow through the end of the year.
Reitzes also emphasized that upcoming product releases were wild cards that Apple could play to its advantage and beat estimates. Mac OS X Leopard's introduction in October would be a clear factor, he said. But it could be unknown devices released over the summer, rather than currently publicized releases, that drove sales beyond current expectations.
"We are particularly excited about a possible iMac redesign," he wrote. "In addition, we continue to believe Apple may be working on some kind of 'ultra-portable PC' or some kind of device that can bridge the gap between media playing, basic wireless computing needs, and even some type of gaming."
The analyst also predicted that sweeping changes to Apple's staple iPod lines could reinforce the electronics firm's growth. A video iPod with a large touchscreen and iPod nanos with increased storage were probable, he claimed. Additional iPhone models and iTunes movie rentals weren't anticipated but were mentioned as possible boosts to Apple's profits if they appear in the near term.
UBS reflected the positive outlook with a new "buy" rating and raised the target share price from $160 to $175.
Comments
The Halo affect from the iPhone will be huge, but we will see it kick in high gear in 2010.
so in the mean time just keep buying aapl while it is still cheap under $300 a share.
Halo 2 is coming to the Mac?
yup...
A lot of this "halo" depends on how good the Apple sales people are at taking iPhone interest and turning it into a Mac sale. Apple also needs to copy the iPhone ads and show a Mac actually doing something. Granted those iPhone ads worked because of the user interface being so different and the fact that you could do all those things on your phone, but it shouldn't be too hard to make a more interesting than the current Hi I'm a PC/Mac ads.
The most intelligent post i've read in some time. YES, show the Mac for what it can do. Start showing its features as well as iLife. How to start a DVD in the time it takes to make this commercial.
I took my bosses vacation pics/video, edited them, made a DVD with menus, and a website in about an hour. Of course less time if i was not at work doing my day job also!!!
This *is* the power of Apple and needs to be shown.
Great post imacFP
The most intelligent post i've read in some time. YES, show the Mac for what it can do. Start showing its features as well as iLife. How to start a DVD in the time it takes to make this commercial.
I took my bosses vacation pics/video, edited them, made a DVD with menus, and a website in about an hour. Of course less time if i was not at work doing my day job also!!!
This *is* the power of Apple and needs to be shown.
Great post imacFP
Great news is Macs were a major part of the sales figures ...
i am waiting for the movie rentals, but I am afraid we may have to wait until next year.
The Halo affect from the iPhone will be huge, but we will see it kick in high gear in 2010.
so in the mean time just keep buying aapl while it is still cheap under $300 a share.
Even thought Apple refers to AppleTV as a hobby, It's clear that they expect it to be yet another halo for selling Macs. But we have to wait until we can get the MPAA on board. I am confident that Jobs will have his way eventually, but come on, I've been waiting way to long.
The most intelligent post i've read in some time. YES, show the Mac for what it can do. Start showing its features as well as iLife. How to start a DVD in the time it takes to make this commercial.
I took my bosses vacation pics/video, edited them, made a DVD with menus, and a website in about an hour. Of course less time if i was not at work doing my day job also!!!
This *is* the power of Apple and needs to be shown.
Perhaps I am short-sided but I don't that is a good idea. The differences between the iPhone's multi-touch interface and other phone UIs is extreme.
The difference between a Mac and PC is not. While OS X is much more refined and intuitive, I don't see how these could come across well in a 30 second time slot.
I think this is why the "I'm A Mac" commercials are the way it are. The Apple Stores have been great for introducing people to the Mac, I think the iPod "halo" pales in comparison to the Apple Store "halo".
For this reason I think Best Buy stores with Apple "tables" will be very effective in finding switchers. because all an interested party has to do is experience the Mac for 2 minutes to be able to make a decision. I can't tell you how many hardcore Windows that I know personally--and made fun of my Mac--are now Mac users from give it a go in an Apple Store.
If you have a half dozen ideas for commercials that showcase OS X and it's native apps I'd love to hear them. I'm not saying it's not possible, I'm saying I can't picture it. I have been known to be wrong. Though that was 1984 when I invested heavily in the zipper industry. Damn you Jacko!
Great news is Macs were a major part of the sales figures ...
Me too. I think all these new legs are designed to also sell new Macs. I'm glad it's working out that way.
PS: Is there an Apple "table" in the Best Buy near you? Since we are 2 hours from a bona fide Apple Store I figure it will be an ideal place to pop one up.
(fast forward 30 years... Grandpa I'm doing a report on a company called Microsoft. Have you ever heard of them?...)
I believe the next iMac will be publicized as "the new iMac... made by the makers of the iPod and iPhone". Everyone will think its cool to own an iMac because the creators of the iPod and iPhone made them... Next thing you know it everyone will be buying Macs, AAPL will be at GOOG levels and apple will RULE THE WORLD!!!...
Exactly!
Too bad the AppleTV isn't good enough yet to throw in there. Someday though.
Something about that article sounds mighty familiar....
http://forums.appleinsider.com/showthread.php?t=68408
C.
Too bad the AppleTV isn't good enough yet to throw in there. Someday though.
Caution: May cause a visceral response.
Hmmm..
Something about that article sounds mighty familiar....
http://forums.appleinsider.com/showthread.php?t=68408
LOL, it just goes to show you the genius on these forums
Too bad the AppleTV isn't good enough yet to throw in there. Someday though.
The AppleTV is fine. What we need is iTunes Store movie rentals with higher resolution to make it complete.
If you have a half dozen ideas for commercials that showcase OS X and it's native apps I'd love to hear them.
Here's one . . . my eight-year-old son taught himself to gather up his favorite photo booth photos and random videos he made with the built-in iSight camera, and burn them to a blank DVD with his own titles on the main menu, photos of himself on the menus, etc. It took him a couple of hours at most. No manual. No grown-up. Just the iMac and its native apps. I'm not sure how you'd fit that in a 30-second spot, but it blows my mind, and really illustrates the ease-of-use factor.
Here's another. I've got a Windows-based PC that I (unfortunately) have to use for some things (not for very much longer), and the iMac. While the WinPC is booting up and running through many minutes of crap, scans, etc. I can wake up the iMac, open several documents, print things, import some photos into Aperture, and so on. There ought to be a way to show that (humorously and memorably) in a short ad spot that shows the iMac doing actual work while the PC churns away doing nothing valuable.
Here's one . . . my eight-year-old son taught himself to gather up his favorite photo booth photos and random videos he made with the built-in iSight camera, and burn them to a blank DVD with his own titles on the main menu, photos of himself on the menus, etc. It took him a couple of hours at most. No manual. No grown-up. Just the iMac and its native apps. I'm not sure how you'd fit that in a 30-second spot, but it blows my mind, and really illustrates the ease-of-use factor.
Here's another. I've got a Windows-based PC that I (unfortunately) have to use for some things (not for very much longer), and the iMac. While the WinPC is booting up and running through many minutes of crap, scans, etc. I can wake up the iMac, open several documents, print things, import some photos into Aperture, and so on. There ought to be a way to show that (humorously and memorably) in a short ad spot that shows the iMac doing actual work while the PC churns away doing nothing valuable.
Nice.
Wouldn't it be cool if AI had a video 'area' where forum members skilled at visualizing/creating/producing this sort of thing could actually create and post them in YouTube-style videos!
The most intelligent post i've read in some time. YES, show the Mac for what it can do. Start showing its features as well as iLife. How to start a DVD in the time it takes to make this commercial.
I took my bosses vacation pics/video, edited them, made a DVD with menus, and a website in about an hour. Of course less time if i was not at work doing my day job also!!!
This *is* the power of Apple and needs to be shown.
Great post imacFP
I am sorry but that is the most Un-Intelligent post i've read in some time.
All of the above can be done on a windows PC in that same time and with just as good results! If you sold Apple like that then you would soon drag the company back 10 years. If anything it is this stupid Apple fanboy hollier than though attitude that will ruin future sales for Apple not bad advertisments. The "It just works" slogan is true when it comes down to the stability of the OS and the ease of real plug 'n play but when it comes down to applications it just is not true. There is much better availability of applications both free and paid for available for the PC for any kind of creative use be it video editing, music creation or photo manipulation.
There are many windows users who would be interested in switching to macs but the thought of having to agree with some of the most complete tossers in the world would certainly put them off. Spouting dribble like some of the shite i read on these forums is not going to help the cause any. Windows XP is a great operating system and while not as good as OSX still plays host to many many more great applications than OSX does, and it does what it does very well. Until you can actually admit that then how can anyone ever take you seriously.
And before you say anything i am writing this on my brand new Mac Book Pro, i also have in my house a MacBook (the wife's), a Mac Mini for a media server, an Apple TV. Apple HiFi, Aiport Extreme, 2x Airport Express and 3 iPods. I also have a Dell XPS Laptop for work which is an excellent computer and serves me well. I hate having to justify myself like that but it seems that as far as many people on this site goes if you have a good word to say about Microsoft then you must be a mac hater. It is not possible to have a good word to say about both systems it seems.