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Piper Jaffray: Sony, Yahoo No Quick Match for iPod, iTunes Dominance

First on TMO - Piper Jaffray: Sony, Yahoo No Quick Match for iPod, iTunes Dominance

by , 9:30 AM EST, March 10th, 2005

Analyst Gene Munster of the investment firm Piper Jaffray & Co. reiterated his "outperform" rating on Apple Computer (AAPL) stock Thursday, saying recent competitive "rumblings" from Sony and Yahoo! are no match for what will be strong financial results for Apple in the second and third fiscal quarters.

Despite a 12% drop in its share price over the last week, Mr. Munster said he believes Apple's competitive position "is strong and in some segments may become even stronger."

Speaking of Sony's Monday announcement of nine new flash-based portable audio devices, Mr. Munster said, "Sony will only be successful at chipping away at iPod market share if a significant amount of highly effective advertising is done and the devices that Sony creates offer functionality benefits over the iPod.

"We believe that any highly effective advertising would allow Sony to gain mindshare, but expect that a shift in consumers' appetites would take a minimum of several quarters to achieve," he told clients in a commentary obtained by The Mac Observer. "Even if Sony were successful at gaining mindshare, Apple's head start in this market is so significant that we would expect the company could sell 20 million more iPods before Sony, or other potential competitors, start materially impacting the market, which is a good worst-case scenario."

As for reports that Yahoo! is close to launching an iTunes-like music service, Mr. Munster wrote that successful online music services must have a more closely tied marketing strategy with portable audio devices, like the Apple iPod to be a true success.

"While we do expect some Windows based devices to exhibit material growth starting in the second half of 2005, Yahoo! has not yet indicated that it will have co-branding partnerships with these device manufacturers," he wrote. "We expect iTunes will maintain leading market share for, a minimum of, several quarters due to the continued success of the device that is the fuel for the service: the iPod."

Mr. Munster reiterated that he is targeting Apple's stock price at US$50.00.

Observer Comments

Show: Subjects Only | Full Comments
View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: MS Is Winning The Format War
Close Name:Guest
Subject: your smoking crack

you dont even read the articles anymore do you? i mean why bother wehn your posts are absolutly devoid of reality.

By the way, M$ DRM is a closed proprietary system.

When you buy music from M$ it's only choice you get in DRM.
10 million peolple have ipods, another 10 million more will this year as well. They already VOTED on who they support and will get thier money. I dont think they are going to be seeing it being Apples fault, but Yahoo and other stores for not offering them what they want. and of course, they eventually can.

Close Name:Guest
Subject: Dream world

and Bush is winning the war on terror

Close Name:Guest
Subject: YAHOO WILL BEAT APPLE

THEN APPLE WILL HAVE TO SELL DELL BOXES RUNNING WIINDOZE XP BECUZ THAT STHE BEST SELLING AND PEOPLE WILL WANT IRIVER MP3 PLAYERS BE CUZ THEY ARE THE BEST AND PEOPLE WILL WANT XP IN THERE CARZ BECUZ ITS THE BEST.....AND...AND.....WELL.....RC TOLD ME TO SAY THESE TINGS BECUZ HIS MEDICATION HAS RUN OUT!!!



HAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!

RC U SILLY PHUCKING FOOL, I PISS ON YOUR SILLY WHITE, PASTY FACE!

Close Name:Guest
Subject: hey RC, u stupid puto....

hows burger king these days?

i bet your sorry ass is still stinging from not buying a bunch of apple stock, eh wonder bread boy?

Close Name:Guest
Subject: MS is winning the war....

True if all happens as you say... however, please note the articles on various sites re: Motorola. Guess what that is!!! Fairplay on a non-Apple iPod platform. The iPod need not be an Apple product. I suspect that if Sony's new players fail like the last ones, they'll choose to license the iPod platform and concentrate on all the money to be made with custom peripherals. Imagine, SONY digital camera interfacing with a SONY iPod... or SONY iPOd attached top a SONY car Radio or Home stereo or alarm clock/radio or....

Close Name:Biff Posts: 1479 Joined: 08 Apr 2004
Subject:

Quote
Guest wrote:
and Bush is winning the war on terror
LOL. Burned any gasoline lately?

Close Name:Guest
Subject: Well RC even "IF" you are correct (and I seriously

If the iPod follows the Macintosh well then even at 2% it will still be a very profitable business for Apple and the rest of the market with the possible exception of say one or two vendors (ie Dell in the PC world) will be struggling quarter to quarter to make a profit. So again RC even "IF" you are corrrect so?

Pagan jim

Close Name:Guest
Subject: MS Losing the Format War

iTunes and iPod dominance INCREASING, Apple on a roll.

What will RC do now?

Close Name:Mace Posts: 9604 Joined: 07 Aug 2003
Subject: Re: MS is winning the war....

Quote
Anonymous wrote:
... I suspect that if Sony's new players fail like the last ones, they'll choose to license the iPod platform and concentrate on all the money to be made with custom peripherals ...
With Sir Howard Stringer in charge, I expect Sony to:

- bundle iTunes with Sony PCs
- sell Sony designed iPod flash
- license iPod connectivity for Sony digital CE products

Close Name:NoVaMac Posts: 121 Joined: 16 Mar 2004
Subject: political guest, Your a jerk-off

Quote
Guest wrote:
and Bush is winning the war on terror


I haven't seen any kamikaze planes lately...have you?
Look at the numbers folks, the market share...face the imusic. APPLE WON the war of digital music, all the competition can do is, sabre rattle.

Close Name:Guest
Subject:

"As more music stores open, iTunes (like the Mac) will be seen as closed proprietary system"

It was a closed proprietary system when it opened, it was a closed proprietary system when its sales shot into the stratosphere, and it was a closed proprietary system when it became the dominant digital music store. Do you see where this is going? It doesn't matter that it's a closed proprietary system.

Close Name:jacrav Posts: 268 Joined: 04 Jul 2001
Subject: Face it RC …

Apple is the M$ of download music

Close Name:Guest
Subject: need an ipod?

Last I checked, I didn't need an iPod to use the iTunes music store.
Why does RC keep saying things like that?

Oh yeah. Cuz he's a troll.

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