Piper Jaffray Maintains 45M iPhones in 2009
Piper Jaffray Maintains 45M iPhones in 2009
by , 2:50 PM EDT, March 31st, 2008
Piper Jaffray analyst Gene Munster has reiterated his estimate for 45 million iPhone sales in 2009. He believes the iPhone is Apple's driver with the greatest potential, and the iPod will be a slower growing segment. New iPhone models with more features and lower average selling price (ASP) will drive significant unit growth, according to Mr. Munster.
In a note to investors obtained by iPO, Mr. Munster outlines three distinct growth drivers. "First, we believe the iPhone will replace the as a driver of significant growth for the company," he wrote. "Second, Apple's growth is powered by the Mac business, which is steadily gaining share in the PC market. And third, we believe the iPod segment will remain a growing business as Apple adds compelling new features at lower prices over the coming months," Mr. Munster wrote.
Mr. Munster admitted that most other investors view his estimate of 45M iPhone sales in CY2009 as aggressive, but he is maintaining that estimate. He expects Apple to roll out a 3G iPhone in the next 3-6 months, offer an entire family of iPhones with two to three separate models by January 2009 and include lower priced models. The addressable market will double every year for the next two years, he predicted.
The estimate is based on an expansive international rollout of the iPhone, and China will be an important factor, Mr. Munster said. "We continue to believe Apple is on track to release the iPhone in Asia in CY08 (likely in Japan). In China, however, the market dynamics complicate Apple's business model of exclusivity and we believe the company will likely need to alter its terms in order to launch the iPhone with a Chinese carrier like China Mobile (over 370M subs) by mid-CY09."
The Piper Jaffray analyst maintained a Buy rating and a 12 month target price of US$250.00.
In afternoon trading, AAPL was at US$143.60, +$0.59.
If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.
In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.
Observer Comments
Comments are currently closed. Please email the author instead.
Recent Headlines - Updated July 6th
- Mon, 11:17 AM
- Ted Landau's User Friendly View - Apple’s LED Cinema Display: A Too Short Story
- 11:11 AM
- Product News - Photo Recovery for Mac Adds Photoshop Support
- 10:39 AM
- Hot Forum Topic - iPhones in Education
- 8:47 AM
- News - Apple Employee Injured in Store Shooting
- Fri, 10:29 AM
- News - Apple Warns of Learning Interchange Security Breach
- 7:30 AM
- News - Happy Fourth of July!
- Thu, 6:07 PM
- TMO Scoop - Psystar Moves to Drop Bankruptcy Ahead of Apple Legal Battle
- 5:37 PM
- News - Uncomfirmed Reports Say Apple & Nvidia On The Outs
- 4:57 PM
- News - Microsoft Sick Over Barf Ad
- 4:09 PM
- Product News - KRK Ships R6 Passive Studio Monitor for Recording
- 3:45 PM
- John Martellaro's Blog - Particle Debris (week ending 7/2) Juiced, Joost and Goosed
- 3:12 PM
- Product News - ExactScan 2 Pro Released
The Mac Observer Reader Specials
- Download Typestyler, still the Ultimate Styling Tool for Internet, Print and Video Graphics. Works great in Classic with a Native OS X Version on the way. Free Tryout: www.typestyler.com
OWC:
OWC Mercury On-The-Go FW400/800/USB2/eSATA Portables. High Performance A/V Rated. Bus Powered. Up to 500GB in the Palm of your Hand. Macworld Editor's Choice. CNET 'Very Good.' From $75.99!
If you're using a Mac, then you've gotta check out Full Tilt Poker for Mac. This Full Tilt Poker bonus code does the unthinkable, it actually rewards!
RamJet Memory: MacBook and MacBook Pro 4GB kits for $57.99! Mac Pro 4GB Kits $99.99! iMac and Mac mini 4GB Kits for $57.99! 1TB SATA Hard Drives for $109.99! Click hereFor the latest Apple products use Ciao, a price comparison website, to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate mobile phones like the Apple iPhone.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.


