iPad continues to boost Apple Inc stock (NASDAQ:AAPL)
Continued support for Apple Inc (NASDAQ:AAPL)’s new product, the iPad, has helped lift its stock price very close to its 52 week best at the close of trading Friday. The Apple Inc (NASDAQ:AAPL) stock price ended at 241.79 (+1.84, +0.77%).
iPad continues to boost Apple Inc stock (NASDAQ:AAPL)
So why has the iPad had such a great effect on Apple Inc (NASDAQ:AAPL)’s stock price? The company has a huge amount invested in this new product, and not just in terms of cash spent. Right now the iPhone is moving towards saturation point, as a large number of their target market have either tried or bought the smart phone.
The laptop and home computer side of Apple Inc (NASDAQ:AAPL)’s business may increase slightly year on year, but it has yet to put a dent into the PC industry. The iPad, however, is a new medium – and has the potential to become a whole new income stream on its own.
With millions of potential customers for the product, and the subsequent boom in online advertising which Apple would be in the driving seat to manage, if the iPad is a success, then Apple will be able to go from a two-pronged company to a three headed monster – potentially doubling their value. If the iPad continues its success story, watch the share price of Apple Inc (NASDAQ:AAPL) to continue to climb.
3 Comments
Several Points:
iPhone is no where close to its saturation point. It will grow with Verizon and further regional growth.
iPod – Comments have been made about the decline in iPod sales. Well that is masked by the huge margin upgrade with the iTouch. Those stats are deceiving. The young crowd is already hooked with iTouch.
iPad is a huge success and will expand and create a whole new market.
Online advertising is yet another boom.
Apple will be at $500 by Feb. 1 2013 (after 2012 earnings release). This doesn’t include any further technology launches.
I’d hardly think that the iPhone market is saturated. You have to realize that consumers are almost going to be forced to upgrade from their 2-year old iPhones in order the get a multitasking iPhone if that’s an important feature. For the average consumer I wouldn’t think it was, but iPhone 3G contracts are going to be ending and I think many users will upgrade. There is going to be a China iPhone and there are rumors of a Verizon model that would certainly increase iPhone numbers. Saturation, I don’t think so.
No doubling of Apple stock on the horizon. They’ll be lucky to get to $300. Hardly any analysts believe Apple is worth more than $280. Most pundits don’t think Apple is worth $240 Apple will have to keep proving itself over and over. The tech sector hates the iPad and they’ll do anything to discredit it. Much of the tech sector hates the whole Apple ecosystem because of its closed nature. Hopefully the consumers will continue to enjoy using the iPad and Apple’s mobile ecosystem.
Constable Odo #
04.12.2010 08:05
No doubling of Apple stock on the horizon. They’ll be lucky to get to $300. Hardly any analysts believe Apple is worth more than $280.
umm, just fyi, over 30 anaylsts (and big ones) have $280-$320 price targets on apple. I agree many people hate apple and want to see them fail but they will hit $300 soon with this extra revenue source in the i pad and advertising..