The market share of visits to the iTunes web site soared 413% year-over-year on Christmas Day as new iPod owners flocked to the site to download music, according to web site traffic measurement company Hitwise. In fact, iTunes is only behind Walmart (NYSE:WMT) when it comes to selling music.
Now, with the announcement of the new iPhone (and by the way, have you seen the darn thing?), and Apple’s entry into the living room with its Apple TV set-top box, the company has yet again showed the world the true meaning of innovation. For a while now, I have criticized Palm (PALM) for their lack of management and marketing. With the new iPhone, Palm may as well cease to exist.
While the price of the iPhone is going to be set at a pricey $499 for a 4GB gadget, I maintain as I have in the past, that Apple is a stock to be held for a long time.
In the near term, I can see some potential pull back, as I am short term bearish on the market. So if the broader market declines, Apple will decline with it. Additionally, Apple is up almost 30% in 2 weeks. That's a huge move making a small pull back a good buying opportunity. In the long term, investors can easily double their investment over 3 years.
I maintain my minimum price target of $112 by Oct and I would not be surprised to see the high end price target I gave it in my October post - $160.
AAPL 1-yr chart:
Full Disclosure: I currently have long positions in AAPL but this can change at any time without notice.