Mac Sales Remain Steady, Needham Lowers AAPL Target Price

Needham & Company analyst Charlie Wolf has noted that the average sale price for Mac computers has remained steady at US$1,300 for several quarters based on slow growth. Even still his 12 month target price for the company's stock is now $590, down from his $595 estimate from the second half of 2013.

Needham & Co notes Mac sales remain steady, sticks with lowered target stock priceNeedham & Co notes Mac sales remain steady, sticks with lowered target stock price

The numbers Mr. Wolf concocts for Apple's products make up the overall value of the company's stock. Each product line accounts for a specific percentage of that value, and can raise or lower depending on factors such as unit sales and average selling price.

Mr. Wolf changed his valuation for Apple mixing the company's 2013 unit sales and revenue with  his 2014 forecast, according to Street Insider. Mac values increased $8.92 in his model because the average price has remained relatively constant even as sales exceed growth in the PC market.

Despite his praise for Mac sales and value, he called Apple's quarterly first fiscal quarter for 2014 a disappointment because the company failed to grow faster than the overall PC market. Apple sold 4.8 million Macs for the quarter, up year over year from 4.1 million.

Mr. Wolf lowered the overall value of the iPad by $8.35 because Apple's market share dropped faster than he had anticipated.

iTunes software and services increased by $24.54, and cash contributions bumped up $17.15, too.

Along with Mr. Wolf's $590 target price for Apple's stock -- a figure that's reevaluated twice a year -- he is maintaining his 2014 $43.40 EPS and $48.70 EPS for 2015. Apple is currently trading at $535.57, up 6.58 (1.24%).