JP Morgan Hikes Apple's Q4 Revenue Estimate
Just what Apple needs - more money. That's the thought on the minds of some Apple critics today, with the opposite reaction, of course, being true of die-hard Apple fans thrilled with the company's growing success and stature within the sphere of mobile gadgets now largely dominated by the Cuprtino titan.
Today, J.P. Morgan hiked its revenue forecast for Apple's 4th quarter for 2010 (from $18.13 billion to $18.71 billion).
The logic cited was the runaway success of the iPad and new iPhone 4, both of which continue to expand into new markets across the globe, each arriving with comparable media thunder and stirring sales success. As a result, JP Morgan once again reiterated its price target of Apple stock for $400 by the end of next year.
J.P. Morgan analyst Mark Moskowitz commented on the estimate early Thursday, adding that these projections only take into consideration the "momentum" of sales of Apple's popular product lines and not the rumors (and likely subsequent sales bonanza) that would follow the iPhone's arrival on other carriers - a persistent rumor that has once again dominated headlines this week everywhere from the Wall Street Journal to Bloomberg.
"We are skeptical, however, of the competition exhibiting a similar adoption curve as the iPadís," Moskowitz said, arguing that today's competition in the tablet marketplace won't be significant to slow Apple's growth in the foreseeable future. "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."
Wall Street Journal