Analyst: Apple to Introduce iPhone, Ultra-portable Device in 2007

UBS Investment Research analyst Ben Reitzes sees strong iPod shuffle and nano sales giving Apple even more momentum moving into 2007. He also predicted next year will bring exciting product announcements, including an Apple-branded cell phone and ultraportable devices.

Mr. Reitzes said "In calendar 2007, we continue to expect new video iPods, more content deals for video, and more moves into the digital entertainment arena for Apple, including the iTV media hub device. Phones and ultra-portable devices could also be announced within the next year. We should hear more from Apple at Macworld in January with Steve Jobsi keynote on January 8."

He forecasts Apple will report 16.56 million iPods sold for this quarter, and 1.8 million Macs sold. Mr. Reitzes is raising his first quarter 2007 EPS from US$0.78 to $0.80 based on an 11-percent revenue growth to $6.4 billion, up from $6.3 billion.

EPS for fiscal 2007 are up, too, from $2.75 to $2.84 based on $23.76 billion in sales, up from Mr. Reitzesi earlier estimate of $23.25 billion. His target price for Appleis stock is up from $95 to $108, and he is maintaining his "Buy" rating.

Apple stock is currently trading at $91.53, up 1.99 (2.22%).

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