Goldman Sachs Adds AAPL to Americas Conviction Buy List
Goldman Sachs Adds AAPL to Americas Conviction Buy List
by , 12:25 PM EDT, May 23rd, 2008
Apple (AAPL) has been added to the Goldman Sachs Americas conviction buy list. Apple is expected to benefit from the launch of the company's second generation iPhone that will work on the 3G GSM network and result in sharply higher phone sales for the second half of the year.
David Bailey, a Goldman Sachs analyst who watches Apple, raised his target price from US$185 to $220 and said that he expects Apple to nearly double its potential iPhone subscriber base this year.
"We continue to expect Apple to beat its 10 million unit goal for calendar year 2008 driven by broader global distribution and the availability of third-party applications, which should keep Apple well ahead of the competition," Mr. Bailey wrote on Thursday.
On May 12, SingTel announced plans to carry the iPhone in Singapore, India, Australia, and the Philippines. That should significantly increase Apple's customer base.
Mr. Bailey's estimate for iPhones sold in 2008 was set at 11 million units. That's in addition to the 3.7 million sold in 2007.
Switching to the subject of Mac sales, Mr. Bailey said: "We also expect Apple to continue to drive Mac unit growth three times the PC market this year."
After heavy profit taking amidst ever soaring prices for oil, AAPL dropped almost US$8.00 on Wednesday to $178.19. However, currently AAPL is trading at $180.80, up $3.75 for the day.
Expectations for Apple's worldwide sales of the new iPhone continue to drive AAPL up, but for every gain AAPL makes, bad economic news in the U.S. seems to stymie further growth -- subsequent to the general recovery from the $120 depths of March.
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.
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: Premium Memory for Mac without the Premium Price. DDR2 4GB from $47.99, DDR3 4GB for Unibody $79.99, Mac Pro 4GB $97.99. Expert Support, Free Installation Videos & Guides. www.MacSales.com
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.

