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Apple's iPhone: Home Court Advantage

Jason only mentioned iPhone as the catalyst to move AAPL nearer to the $300 goal post come January.

As he has mentioned in his earlier postings, there are several other catalysts that will dwarf the income/profit contribution iPhone will make to the Apple earnings story through CY '08.

Keep you eye on the real ball ... Mac computer sales. Expect to see consistent YoY growth of 40% and healthy margins maintained.

Apple's +18 billion in cash will also begin to develop a life its own.

You did notice that Apple Store sales were up +70% YoY, too, right? And they are adding a lot more stores this year.

And lets see how well they can keep their music business steady.

Let's not forget deferred income, either. Its contribution to quarterly EPS after another 2 or 3 quarters will become very significant, and iPhone sales swell the 24-month/8-quarter straight-line revenue recognition pipeline.

And Apple may have new tricks up its sleeve. Of course they have probably 4 iPhones in their pipeline to start to cover multiple price points like their iPod offerings. Expect the first lower end model no later than MacWorld in January.

Don't expect AppleTV to stay in hobby mode either. It will grow up as a full-featured (i.e. high definition displays), integrated home entertainment system that is internet connect, wireless in cool ways and stunning in design. B&O and Sony are the next victims of AppleTV, guaranteed.

Oh .... and watch the gaming story unfold. I don't know how to count the revenue possibilities any more for that than I do Apple's probable inroads they will make in the enterprise market.

Jason predicting $300 by January is in the cards.