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(Image courtesy of AppleInsider)
If it were up to J.P. Morgan, Apple would have a boffo end to 2010 -- and they’ve helped out by upping Cupertino’s revenue estimate for the fourth quarter to $18.71 billion as well as aiming for a $400 stock price by December of next year.
AppleInsider is reporting that J.P. Morgan is certainly bullish on Apple following “strong sales momentum” for the iPad and iPhone, revising their revenue estimates for the device maker all the way to the end of the 2011 fiscal year. J.P. Morgan analyst Mark Moskowitz reassured investors early Thursday, claiming that there is “plenty of growth” left for Apple and raising their fourth quarter revenue estimates from $18.13 billion to $18.71 billion.
The analyst based the increase on “checks with primary research contacts” which reveal that the iPhone and iPad were still gaining momentum even as Apple closed their fourth quarter on September 30. J.P. Morgan is also giddy about Apple’s prospects for next year, claiming estimated revenue of $81.53 billion for Cupertino’s 2011 fiscal year -- another jump up from their previous estimate of $78.84 billion.
All of this prognostication for 2011 doesn’t even factor in the rumors of the iPhone coming to Verizon Wireless, despite increasing rumors claiming that the device will finally arrive on the CDMA carrier next year. Moskowitz claims that such a move could bump Apple’s stock price by $2.00 in Incremental Earnings Per Share next year.
The analyst also weighed in on the prospects for contenders to the iPad’s throne, claiming that the device’s “competitive prowess” will surpass even that of the iPhone. “We are skeptical, however, of the competition exhibiting a similar adoption curve as the iPad’s,” Moskowitz said. “In contrast to smartphones and the need for apps, we believe the content (movies and TV shows) is the key to tablet adoption, and here, Apple has the content.”
And what about those rumblings that the iPad will cannibalize notebook and netbook sales? J.P. Morgan believes the iPad could actually help Mac sales: “We would not be surprised to see another ‘halo effect’ whereby iPad sales drive purchases of Macs as the central command center for content creation and sharing in a household,” Moskowitz notes, “and then the iPad offers the ultra-portable experience.”
Apple’s quarterly earnings report will be published on Monday, October 18 at 5pm EST, 2pm PST.
Follow this article’s author, J.R. Bookwalter on Twitter