The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Apple Poised to be $42B Company by 2009

Apple Poised to be $42B Company by 2009

by , 4:25 PM EDT, June 20th, 2007

In the days before the iPhone becomes available, there is considerable buzz. No one knows if the AT&T stores will have enough iPhone on hand to sell on the 29th. One thing that does appear to be certain, however, is the mathematics of the cell phone business: the market is 12 times bigger than the iPod market. The affect on Apple's numbers in a few years could be shocking, according to analyst Gene Munster.

USA Today took a look at the numbers game for Apple on Wednesday. Apple's share of the home computer market has gone from 3.2 percent in May 2004 to 7.6 percent in May 2007. Apple has sold 100 million iPods and 2.5 billion songs. Harvard University business professor David Yoffie believes that Apple has received an estimated US$400M in free publicity surrounding the iPhone.

The next wave is the looming reality of the mobile phone market. Piper Jaffray analysts Gene Munster said, "The wireless industry is 12 times the size of the digital music player market that Apple dominates. The total audience for cellphones is so huge, it's shocking what it does to Apple's numbers."

Charles Wolf, an independent analyst, sees Apple selling 100 million phones a year within 10 years. In the near term, Mr. Munster sees iPhone sales doubling Apple's size, from about US$24B in annual revenue to $42B. [That difference alone is about 36 million phones or less than 4 percent of the total market.]

The conclusion was sobering, "Tech analysts are downright giddy about the potential of the iPhone and what it means to Apple."

  

Recent Headlines - Updated October 22nd

Tue,8:51 PM
GTAT Announces ‘Amicable Parting’ of Ways with Apple
6:50 PM
How I Came to Own and Sell a TAM Probably Owned by Jony Ive
5:01 PM
Adobe KnowHow: Learn Photography From The Best for $29.99
4:49 PM
How To Get Ready For iOS 8.1 [Update]
2:59 PM
Chuck La Tournous and Chris Breen to Speak at NJMUG’s 30th Anniversary Tuesday
2:24 PM
Don’t Upgrade to Yosemite or iOS 8.1 Before You Read This Column
2:06 PM
TMO Daily Observations: 2014-10-21
12:29 PM
How Apple Pay Mitigates Breach Fatigue
10:50 AM
How to Enable Apple’s SMS Relay on your Mac or iPad
9:43 AM
Apple Earnings Smackdown Ranks Analyst Predictions
Mon,9:52 PM
Apple Q4 Earnings Sliced And Diced
8:21 PM
Apple Q4 MacBook Sales Hit Record Breaking Numbers, Jump 25 Percent
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!