Analyst: 11% of Windows iPod users to buy a Mac
In a research note released to clients on Thursday and obtained by AppleInsider, Needham & Co. analyst Charlie Wolf raised his target price on Apple Computer to $104 a share. The analyst reiterated his assumption that 11% of Windows users owning iPods will purchase a Mac, and notes that sales at the iTunes Music Store have accelerated to a $450 million annual run rate. "The increase in music sales in combination with a decrease in peripheral sales in our revised model raises Apple's overall gross profits because music sales are much more profitable than peripheral sales," Wolf said. In addition to raising its Apple price target from $83 to $104, the firm also raised its earnings per share estimates from $1.85 to $2.00 in fiscal 2005, and from $2.25 to $2.50 in 2006. Needham maintains a 'Buy' rating on Apple.
Comments
If online music were easy, everyone would be succeeding at it instead of falling of the bandwagon so damn hard.
Originally posted by BRussell
Music sales are more profitable than peripheral sales?
That statement struck me as odd too.
Doesn't Apple pocket something like $.02 for each song they sell?
Originally posted by schmidm77
That statement struck me as odd too.
Doesn't Apple pocket something like $.02 for each song they sell?
It's not that low and the original estimates were based on MUCH lower volume of music sales. The volume Apple is selling now and is on pace to sell is astonishing and is making the Music Store a money maker in itself.
And the Movie store still yet to come.
Originally posted by Guartho
How many Windows iPod users are there? What does that 11percent translate to as a rough number?
Apple won't really say, or rather, doesn't break it down. But now that Apple is only shipping with USB 2.0 cables, it appears enough to cater to the PC crowd. Based on the latest Q1 numbers, and some simple addition on my part, I figured the total sales of ipods to be around 7 million. Based on old figures of PCs in the household from about 2003, there was an estimated 110 million people with a computer. Which equates to there being about 7% of ipods per computer or 7 million ipods total. Factor in the marketshare for Macs at 2% and you get about 140,000 iPods in use by Mac users, and 6,860,000 iPods in use by PC users. 11% of the PC user base equates to roughly 754,600 switchers...
Though it has been a long day, and I may be waaaaay off on this math, but whatever....If anyone can do better, by all means, have at it...
Originally posted by ijerry
11% of the PC user base equates to roughly 754,600 switchers...
Though it has been a long day, and I may be waaaaay off on this math, but whatever....If anyone can do better, by all means, have at it...
Methinks your math is waaaay off, or at least waaay off
At Macworld, Jobs held up the 10 millionth iPod. Sales estimates for this year (based on analysts) are 26 million units. And people think the iPod is ubiquitous *now*.
If we're measuring just the halo effect from these 26 million units we're looking at 2-2.5 million switchers.
Originally posted by macslut
Methinks your math is waaaay off, or at least waaay off
At Macworld, Jobs held up the 10 millionth iPod. Sales estimates for this year (based on analysts) are 26 million units. And people think the iPod is ubiquitous *now*.
If we're measuring just the halo effect from these 26 million units we're looking at 2-2.5 million switchers.
AUSTRALIA has seen a 49% JUMP IN MAC SALES
http://www.macobserver.com/article/2005/02/21.9.shtml
I have always been a strong advocate of Apple but people don't beleave you untill they can actually see the proof.
Father PC to 12"pb and iPod
Father-In-Law PC to 17"pb and iPod
Uncle PC to 15"pb
Father-In -Law's partner (business) PC to 17"pb
The interesting thing is its all Poweboooks and ALL have seen the OS and now rave about the diference in quality, stability and ease of use.
I even get mocking e-mail from them when they get a e-mail virus alert for windows.
Thank you iPod you have made my "Family Tecnical Support" role 1000% easier.
j.
Originally posted by johnrp
*snip*
Thank you iPod [and Apple] you have made my "Family Tecnical Support" role 1000% easier.
j.
dude, totally. in the late 90's i had to do tech support for me parents from halfway around the world, and only during holidays would i visit them, and 50% of the time at home with them would be fixing, defraging, backing up, installing antivirus for them
one year a PC virus completely wrecked a hard disk... and maybe the motherboard too... that was seriously whack, my brother and i were thousands of miles away so couldn't help them
1+ year ago my brother (older, richer brother) gave my dad an iBook G4 933mhz... tech support calls stopped.... then we had to talk about real issues like when am i going to get a real job, if i have a partner/soulmate, if i am eating well, if i am not into anything 'weird', etc.
damn they shouldhave stuck with a pee cee
My 2001-esque black monolith p4 3.0HT sits silently beside me as I gaze upon my Mac mini with iPod photo docked (making 3... 3!! iMovies right now - one for dad's soccer club, one for work, one for a wedding vid)
My iBook is charging no less than two feet away. My 3rd Gen iPod did it. I dove in headfirst and it's been refreshing. 11 Percent? At the very least.
Originally posted by grahamw
*Raises hand* Switched.
My 2001-esque black monolith p4 3.0HT sits silently beside me as I gaze upon my Mac mini with iPod photo docked (making 3... 3!! iMovies right now - one for dad's soccer club, one for work, one for a wedding vid)
My iBook is charging no less than two feet away. My 3rd Gen iPod did it. I dove in headfirst and it's been refreshing. 11 Percent? At the very least.
dude, sweet, that's excellent living proof that having a "PENTIUM 4 3.0GHZ HyperThreading" means jack all compared to ease-of-use and productivity. the gigaherz wars are pretty much dead and meaningless now. enjoy your Mac mini...!!! yeah
plus, there's the whole elitist thing
Originally posted by progmac
people switching to the mac...that's cool i guess. i don't want more than a 1 or 2% increase in market share though. the last thing i want to have to worry about as a mac user is viruses and other nonsense that come with having a massively popular computer platform. i think we're a ways off from that and i enjoy the increasing software selection in the meantime.
plus, there's the whole elitist thing
so you'd want max 5% market share? i'm willing to see how 10% market share works out
They will probably milk this thing raw though.
I just made the switch (well, my pb ships tomorrow according to them) so.
Originally posted by humanfellow
If Apple ships out a higher volume of computers does that mean we will see the prices for machines come down?
They will probably milk this thing raw though.
probably the latter... publicly traded company + high valued share price = profits, profits, profits as primary goal