I have been digging around more on the iPhone story and the success of iTunes in selling videos and movies.
Did you know that:
- Last year, 1 billion cell phones were sold. Thats a huge market! If Apple can sell 1 million of these within 6 months, that is an additional $500 million to their 2007 revenues. If they sell 5 million, thats $2.5 billion more in revenues.
- 1.3 million movies were sold in 4 months via iTunes. This will only increase with Apple TV.
- Over 50 million videos have been downloaded using iTunes.
I believe Apple can earn $4 in 2007. If Mac sales continue to grow (and they should) and iPhone does not face launch delays, I believe the stock can see $200 by the end of this year.
-- Faisal Laljee
Full Disclosure: I own AAPL for my portfolios but my position can change anytime without notice.