RBC Analyst Raises Apple Price Target and iPhone Shipment Forecast

RBC Capital Markets' Mike Abramsky recently returned from Apple Inc.'s (AAPL) headquarters in Cupertino, Calif. bearing good news. In a note to clients on Monday, he said his research on Apple's upcoming 3G and faster processor will unleash the iPhone's real potential.

The analyst raised his price target on Apple to $220 from $200, while maintaining an "outperform" call on the stock.

Mr. Abramsky wrote:

We see upside potential to iPhone estimates following changes, in our opinion, Apple may make to its iPhone business model, expected to accelerate momentum and expand its global addressable market. In our view, 3G remains on track for a global June launch, with subsequent carrier announcements, new pricing, and features showcasing 3G.

The new iPhone will likely allow cut/paste, home screen personalization, landscape/portrait mode, and other capabilities (e.g. Flash support on Safari) absent on the EDGE version. It may also showcase video/voice capture/messaging, streaming video, and real-time GPS location-based services.

Apple's business model behind the iPhone impressed Mr. Abramsky enough to raise his device shipment forecast to 14 million units in 2008 and 24 million in 2009.

As to exactly when the iPhone will be available in Canada, Mr. Abramsky estimates it will arrive in the third quarter of this year. At 10% the size of the U.S. market, more than 300,000 iPhones could be sold in Canada later when they become available.

Comments

[jmmx:]

Did he say: "...raise his device shipment forecast to 14 million units in 2008 and 24 million in 2009." !!!!

14 MILLION! Whoa!

And price target of only $220? When?? By Friday? (lol)

And what are his Mac numbers? It should go to $220 on those alone!
----

BTW - Re; "The new iPhone will likely allow cut/paste, home screen personalization, landscape/portrait mode, and other capabilities (e.g. Flash support on Safari) absent on the EDGE version."

those are all software and should be available on ALL models (as landscape/portrait modes already are, and home screen personalization is already announced for v2.0.)

2008 May 06 05:03 AM

[jmmx:]

Vodaphone in India rumors say the iPhone will cost $700. Is this the new business model:

iPhone 3G ---------------------- $700
Approved Carrier discount --------- 200
----------------------...
---------- final price: ---------- $500

Discount comes at signing of contract (or first X months free) and is supported by Apple. But Apple gets the monthly cut. So now Apple gets their $200 even if phone is unlocked and signed with other carrier.

------

But even at today's pricing - let's assume 12 M left to sell.

12M X $450 (average price) = $5.4 B X 15% net margin =
810 M net profit / 881 M shares = $0.92 per share

Of course this is then spread out over 24 months tho you need to add in the contribution from the carriers. If half the phones are unlocked, and Apple gets $200/phone over 24 months then the net is 100 per phone over 24 months or another $1200 M * 15% = $180 M / 881 M shares = another $0.20 / share or total of
---- total expected revenue generated from iPhone for the rest of the year

- $1.12 per share

now about those Macs....

2008 May 06 06:30 AM

[seeksome:]

24 Million units! If Apples sells that many units $220. will be in the rear view mirror!For your iphone needs at below wholesale visit:seeksomething.com

2008 May 06 07:32 AM

[tom1234:]

well well ---now your answering my question --that is last oct /nov aapl was $202.00 and there has been GROWTH since then with a debt free APPLE ---if one wants to revisit the past--- Tobin Smith (17 oct 07) was looking at $225.00 ----so are we there yet --only the WIZZARD knows --but MR JOBS did say to his stock holders of record ( first quarter ) be patient there is no explanation why after his reportings the stock went down ---

2008 May 06 08:21 AM

[tom1234:]

the more i review the behavior pattern of aapl ---the sales ---the reception by the public( ie the bling on college campus ) the pipe line --the debt free aapl company --the new markets (china--india) the more i ask how much above $300.00 per share are we going--

2008 May 06 12:00 PM