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$50.00.
Observer Comments
Thu Mar 10, 2005 12:59 pm Subject: MS Is Winning The Format War
you dont even read the articles anymore do you? i mean why bother wehn your posts are absolutly devoid of reality.
By the way, M$ 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.
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!
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....
Thu Mar 10, 2005 2:46 pm 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
Thu Mar 10, 2005 5:14 pm Subject: Re: MS is winning the war....
QuoteWith Sir Howard Stringer in charge, I expect Sony to: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 ...
- bundle iTunes with Sony PCs
- sell Sony designed iPod flash
- license iPod connectivity for Sony digital CE products
Thu Mar 10, 2005 5:34 pm Subject: political guest, Your a jerk-off
"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.
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