iPad predicted to drive 50% of Apple's financial growth in 2011
Robert Cihra with Caris & Company issued a note to investors on Friday noting that Apple's growth is "stunning." He said the company has managed to effectively create its own growth through innovation, while its competitors are lost "in a sea of otherwise commoditized hardware."
In the December quarter, Cihra expects Apple to sell 6.7 million iPads. He has also projected the sale of 32 million iPads in fiscal year 2011, accounting for more growth in Apple's bottom line than the iPhone.
"A product that didn't even exist a year ago... now leads an entire charge to thin-client access/computing architecture," he wrote. He sees the iPad "igniting an explosion toward 'thin-client' access computing, with Apple's most extensible advantage its lightweight iOS software and apps ecosystem."
Cihra sees the iPhone accounting for more than 40 percent of Apple's fiscal year 2011 growth, with 64 million units sold. He also sees another 5 percent expansion in the company's bottom line thanks to the Mac platform, where he sees sales increasing 19 percent year over year.
Accordingly, Caris & Company has raised its price target for AAPL stock to $400, up from its previous projection of $375.
Looking forward, Cihra sees iOS becoming "one of the world's most pervasive operating systems," thanks to an estimated total of 157 million iOS devices sold to date at the end of calendar year 2010.
He also expects Apple to turn on its massive North Carolina data center soon to drive more cloud-based services. Cihra noted that Apple increased its capital expenditures more than 100 percent in fiscal year 2010, driven by non-retail store costs.
Apple plans to increase its capital expenses another 55 percent year over year in fiscal year 2011, when the company has said it will spend about $4 billion. Part of that will go toward Apple's massive retail expansion plans in 2011, with 40 to 50 new stores expended to account for about $600 million.
41 Comments
That sounds a bit much but then again as the next generation iPad comes out who knows? As a share holder I welcome everything that makes Apple more valuable. As a Mac user I fear, perhaps erroneously, for my beloved Macs The thin client approach and the new Apple cloud we all assume is coming will probably make this prediction come true the more i think about it.
(forgive there being no silly comment about being first!)
That sounds a bit much but then again as the next generation iPad comes out who knows? As a share holder I welcome everything that makes Apple more valuable. As a Mac user I fear, perhaps erroneously, for my beloved Macs
(forgive there being no silly comment about being first!)
I can hardly wait to see what surprises the next gen iPad will bring to the table. Apple knows that it will have drive sales to new levels, I'm sure the market is not even close to being saturated. It'll be interesting to see if they keep gen one on the shelves at a lower price point; something tells me they won't for fear that it would cannibalize the new model.
(forgive there being no silly comment about DaHarder)
Ipad competition needs to at least beat Apple prices. In Canada, the 16g Samsung Galaxie sells for 649$ while the ipad 3g sells for the same price.
If you go to the super market and the noname cheese whiz is the same price has the brand name, your going to buy the real thing. To beat Apple, you must sell at a lower price, I would even say at a much lower price.
That makes me wonder if Apple owns some kind of patents for the ipad to prevent everyone, there mother and there pets from copying it. Apple made that category worked and now anyone can come in with cheap clones?
I can hardly wait to see what surprises the next gen iPad will bring to the table. Apple knows that it will have drive sales to new levels, I'm sure the market is not even close to being saturated. It'll be interesting to see if they keep gen one on the shelves at a lower price point; something tells me they won't for fear that it would cannibalize the new model.
(forgive there being no silly comment about DaHarder)
Agreed. I added a get out clause after you posted lol. (Who is DaHarder?)
Ipad competition needs to at least beat Apple prices. In Canada, the 16g Samsung Galaxie sells for 649$ while the ipad 3g sells for the same price.
If you go to the super market and the noname cheese whiz is the same price has the brand name, your going to buy the real thing. To beat Apple, you must sell at a lower price, I would even say at a much lower price.
That makes me wonder if Apple owns some kind of patents for the ipad to prevent everyone, there mother and there pets from copying it. Apple made that category worked and now anyone can come in with cheap clones?
Copying hardware 'cheaply' has been the key to fortunes in the PC market but they all had a level playing field when it came to the OS, peripherals and all else. This is a different game now, the iPad isn't just amazing hardware (and I think a lot of that is well protected by patents plus much of it is Apple's own) but about the OS and eco system. There is no way the clone makes can compete there so they are to put it politely, royally screwed IMHO.