Mac Market Growth to Fuel Earnings

| Apple Stock Watch

Mac marketshare is expected to continue growing in 2007, and even a small increase will have a big impact on earnings, according to Piper Jaffray analyst Gene Munster. Completion of the transition to Intel processors, improved product availability, the growing Apple customer base, and the ability to run Windows on Macs will all act as catalysts for sales, helping to fuel Appleis bottom line.

Mr. Munster stated "We believe Mac market share can grow by 1 percent again in CY07, ending the year at around 4 percent, with an average for the year of 3.5 percent. In our estimation, an increase in Mac market share to 3.5 percent would lead to upside to Street CY07 EPS of $0.34 or 11.6 percent."

A 3.5 percent marketshare certainly would be good news for Mac users and Apple stock holders. The market consensus for Appleis 2007 marketshare, however, is at 2.7 percent.

Piper Jaffray is maintaining an "Outperform" rating for Apple stock with a target price of US$99. Apple is currently trading at $87.75, up 1.61 (1.87%) in the pre-market.

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