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Apple Stock may skyrocket based on new iPhone deals

macnn.com — Apple's stock is likely to go higher than expected based on a spate of iPhone agreements the company has forged, says analyst Shaw Wu of American Technology Research. Wu in fact suggests that the potential market could "more than triple" in 2008, from 150 million people to approximately 470 million.

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  • monospaced, on 05/12/2008, -11/+38Go AAPL, you can surpass $200, I have faith.
    • Rauby, on 05/12/2008, -7/+11It is a month to WWDC, and it´s $190.

      Go AAPL, you can surpass $250.
      • nycmac247, on 05/12/2008, -12/+8LOL - $300 once these dumbasses figure out that 3g + executable apps = rich new platform.
        • dagamer34, on 05/12/2008, -2/+3Apple is the new Google.
        • nycmac247, on 05/12/2008, -2/+4yes, but haters will keep on hating...no matter what logic and the track record say
    • monospaced, on 05/12/2008, -3/+4Right before MacWorld, Apple stock dropped from 180 to under 140, so there are no guarantees. I think that adding the potential for many millions of customers who occupy the majority of the planet (Asia) could help curb any losses.
    • locojones, on 05/13/2008, -1/+3***** pump and dump article.
    • bsolidgold, on 05/13/2008, -1/+1Split!
    • jabberwolf, on 05/13/2008, -0/+1Yes we have faith,
      and the stock goes over 200...
      and Jobs buys stock options again....
      stock falls and ALL THE MONEY appletards invested goes directly into Stevie Job's pockets!
  • fraul, on 05/12/2008, -2/+13I just read on this week's Veja magazine (Brazil's equivalent to Newsweek) that Claro carrier just signed with apple to bring the iPhone to Brazil before the end of the year ... that should help the stock a lot, since the phone has made more covers here since it's launch than the president when got elected, and it's not even officially available.

    I already got mine btw.
    • dromni, on 05/12/2008, -1/+4Yup, I guess that the vast, nearly endless potential for sales lies in the BRIC economies - Brazil included.
      • cave, on 05/14/2008, -0/+1If Brazil wasn't included then it would just be RIC.
  • ascharf85, on 05/12/2008, -3/+46If this is true then the stock price should already be reflected by this in terms of anticipation of it going higher.
    • kipmartin, on 05/12/2008, -15/+5thats not how it works. stocks go up when stocks go up. in other words, stocks go up once others see them go up. stock purchasing is more of a 'lemming' activity than a 'bird dogging' one.
      • BlackKnight6, on 05/12/2008, -0/+8No, he is pretty much on the mark. This information is already public knowledge and investors would have already taken advantage of this and the prices would have risen because of it. This would be in the realm of efficient market theory. However, what you propose is paradoxical and would lead to infinite stock growth.
      • sovereign3, on 05/12/2008, -0/+7"stocks go up when stocks go up"

        Clever observation. You're a regular Alan Greenspan. I sure hope you're not a fund manager.
      • BradMW, on 05/13/2008, -1/+2Hey kipmartin, nice to see you again. It's Brad from Enron, long time no see.
    • dagamer34, on 05/12/2008, -0/+7Have you been ignoring the past 3 months when it was down to $118? It already IS up.
    • BrendanSheehan, on 05/13/2008, -2/+4AAPL is undervalued.

      They just had their biggest percentage growth for the Mac year over year in decades and the stock barely moved afterwards. When the iPhone flinches, Wall street jumps, but when the Mac leaps Wall Street shrugs.
    • SillyRabbits, on 05/13/2008, -1/+2Trying to talk up a stock that already has almost a P/E ratio of 40? When you see articles like this, it's a good warning sign.
  • mvanhorn, on 05/12/2008, -17/+13I'm a stockholder.. therefore, dugg
  • ascharf85, on 05/12/2008, -5/+25If this is true the stock price should already be reflected by the anticipation of the gain. Similar to the Yahoo! and Microsoft deal even though it is supposed to be dead.
    • kipmartin, on 05/12/2008, -1/+1actually, thats not how it worked with MicroSoft. Microsoft rose a few points and then took off. check it out. Yahoo doesnt count because they were in bad shape and looked like a deal to the dummies out there.
  • clak, on 05/12/2008, -1/+17The stock went up almost five dollars today, so yes, it's entirely possible. The stock is at $188.16 at the time of this writing.
  • Alexbalix, on 05/12/2008, -2/+2Well now it will...
  • WomensUnderwear, on 05/12/2008, -8/+4i'm ditching all my apple shares and getting into yahoo asap
    • sovereign3, on 05/12/2008, -1/+8Let me know how that works out.
      • punkcat, on 05/12/2008, -1/+4he'll just be asking you for some change when you get the reply.
      • WomensUnderwear, on 05/13/2008, -0/+0yahoo underperforming. i'm throwing my life savings into hd-dvd
  • gtlogic, on 05/12/2008, -4/+61Fact: 91.8% of those who dugg this story are AAPL shareholders.
  • mishaco, on 05/12/2008, -4/+6aapl is up nearly $5 every day for the last 3 weeks . im already back in the black after the downturn it took after january first .
    go for $300 !
  • diggB, on 05/12/2008, -1/+12A rumored $200 discount by AT&T and adding 3G would be certainly allow Apple to exceed its goal of selling 10 million phones by the end of the year.
  • tibbon, on 05/12/2008, -6/+22I love Apple, I really do. I have many of their products and this is great but.... this company is overvalued. P/E of ~38 is kinda high for a 30 year old company. In a way that means it will take 38 years for the profit of the company to pay off the value of the stock currently. If the stock doubles, well... double that amount of time. The average PE is 14.
    From the Wiki: (For P/E 25+):"A company whose shares have a very high P/E may have high expected future growth in earnings or the stock may be the subject of a speculative bubble."
    Just the iPhone sales aren't going to create these billions in instant profit. Get real.
    • tmarthal, on 05/12/2008, -2/+5Apple will be making money off the iphone the same way that it does off its ipods. On the hardware as well as through the iTunes store purchases. They are going to be taking a percent of all of the signed code distributed (granted, the price is developer assigned)... which will be huge.
    • TotalDouche, on 05/12/2008, -2/+5As ascharf85 said, the stock has moved up to recent highs based on future earnings potential. When Apple announces their earnings numbers, earnings go up, and P/E goes down.

      Plus, a P/E of 38 isn't that bad for a fast-growing tech company. Google used to be at 60, but they deserved it b/c they deliver blowout numbers every quarter (or, at least they used to).
    • nycmac247, on 05/12/2008, -2/+3you don't get it - the app store...
      • locojones, on 05/13/2008, -2/+3will be a failure.
        • mrBitch, on 05/13/2008, -0/+2I remember when you posted "iPhone will be a failure"...
          • cthellis, on 05/13/2008, -0/+2I guess that means the App Store will be just as much a failure as the iPhone!
    • bernandoo, on 05/12/2008, -2/+3you're right.. the iphone isn't going to support all those future revenues. But 30% Mac growth + iphone + ipod will.
      If you're looking up investing definitions on wikipedia, stick to mutual funds.
    • cthellis, on 05/13/2008, -1/+5A P/E that high is not, however, that far out of reality for a company that's recognized as quite upwardly-mobile, else RIM wouldn't be as stupidly huge as it is, either. (60+ these days.) Google itself is has been sporting 40's for a while, and it doesn't have people quaking in their boots. Juniper Networks is really high as it's forging even further into other basically-dominated-by-others sectors of the networking landscape.

      It will make the stock more volatile (as Apple's own is certainly an example of) and more responsive to manipulation, but that doesn't mean it's undeserved or unprofitable.

      The iPhone doesn't create an "instant market," but it does have the potential to create a whole new and compelling mobile platform while will eventually bring the profit around, and it's doing so without billions having to be dumped down a hole to establish itself in any way. Apple's been consistently broadening the iPod's appeal, improving their multimedia strength and influence, and their brand recognition and computer sales have improved tremendously because of it. They're not just "selling their product" better now then before, as HP has in relation to Dell, but rather are constantly broadening the company as a whole, basically establishing whole new markets, entering others strongly... That's why the P/E isn't a huge warning sign.

      It would be possible for other companies to leapfrog Apple's products and outperform them, but the market can also see a trend established by the iPod and continued through the iTunes marketplace, and reflected in responses to the iPhone... they're just not that good at DOING it, while Apple hasn't shown any inclination to rest on their laurels and just soak up easy profits. Until that situation changes, it's not a terribly worrisome risk--like betting against Google right now, which has only moved from strength to strength, and keeps dipping their fingers into all sorts of markets and having an impact.

      Certainly it's possible and even probable that they'll be bypassed at SOME point, but... probably not in the short run. And long runs can be very long--and very profitable--in the meanwhile.
  • firblitz, on 05/12/2008, -1/+16I'm convinced it will go up because I recently sold all my shares >:(
    • republicker, on 05/13/2008, -0/+1I will be buying stocks on the day of the crash as well.
    • SillyRabbits, on 05/13/2008, -0/+1@firblitz

      Don't worry, there's always the chance you will be able to buy them back next year at half the price.
  • paulsmerdon, on 05/12/2008, -0/+8This is the same idiot that lowered his price target a few weeks ago then raised it when the stock took off. Most of these "analysts" are completely worthless. Changing your opinion and outlook based on what is happening day-to-day provides very little value to investors.

    That said, of course the stock is moving higher over the long run. Apple is doing a fantastic job of integrating all of their offerings in a way that is going to turn them into a powerhouse in many different markets.

    I own a bunch of Apple stock and have been quite pleased with its run over the last few weeks but I wouldn't be surprised to see a small correction in the near future.
  • DroppedGT, on 05/12/2008, -0/+12$$$ for those who bought AAPL in Jan-Feb when it hit $118 !
    • haterrade, on 05/12/2008, -0/+7...or those who bought it under $20 7 years ago before the iPod took off
      • dagamer34, on 05/12/2008, -4/+2You would have had to have sold it when it hit $200 to actually be happy, otherwise you just missed your chance to double your money AGAIN.
  • xoineg, on 05/12/2008, -0/+3yes, go higher.... i need a new mac and the new iphone when it comes out :D
  • gtownplaya, on 05/12/2008, -4/+5HOW ABOUT APPLE BRING THE IPHONE TO CANADA!!!!!!!!!!!!!!!!!!!!!!
    I WANT ONE!!!
    • paulsmerdon, on 05/12/2008, -0/+2According to Ted Rogers, it's coming.

      My guess is that they'll launch the 3G version in Canada along with the rest of the world.
  • achoi, on 05/12/2008, -8/+2470 million? as in they are going to sell 470 million units this year?

    let's see.. 470 000 000 units / 31 556 926 seconds (in a year) == 14.89 units created every second for a year.

    14.89 * 2 629 743.83 seconds (in a month) == 39,166,666 units created every month.

    Who is doing their production? nintendo should hire these guys to make them some wii units for one month.
    • peznex, on 05/12/2008, -0/+4"potential market" does not mean the same thing as "sales."
      • tibbon, on 05/12/2008, -2/+2But most people here are forgetting that. I doubt that just by the introduction of 3G/GPS that there will be over 300 million potential new buyers. *****
        • peznex, on 05/12/2008, -0/+4It's not about 3G/GPS. It's about all the new "iPhone agreements" with other companies to make it for sale around the world.
  • tibbon, on 05/12/2008, -4/+7I can't see them adding more than the population of the US in subscribers just because of 3G and GPS.
    • peznex, on 05/12/2008, -0/+3"potential market" does not mean the same thing as "subscribers."
    • DouglasScott, on 05/12/2008, -0/+5It's the foreign countries getting the iPhone for the first time. Australia, Brazil, India, China and and some little ones sprinkled on.
      • Jeffler, on 05/12/2008, -1/+31. I love you you listed those in reverse population order
        2. How does Australia make the list and not Canada of "big" countries?
        • DouglasScott, on 05/13/2008, -1/+11. Why thank you that's nice.
          2. Come on, Canada? Really? Aus has got to be bigger, right? (you will note that my profile says that I'm a Canadian.)
        • Karmavs, on 05/13/2008, -0/+1No… Australia has about 2/3 of Canada's population. (edit: 20.5 million Vs 33.4 million according to google)
          Probably since 90% of us live around the edge of the continent.
    • dagamer34, on 05/12/2008, -2/+6There is a world outside the US you know.
  • JasonCox, on 05/12/2008, -9/+3This is good news. Once they release a 3G iPhone I'll be able to hack it and use it on Sprint.
    • dagamer34, on 05/12/2008, -1/+7Sprint is a CDMA carrier. The iPhone will never work with a CDMA carrier without additional hardware support. And good luck with that.
  • tibbon, on 05/12/2008, -0/+3Wonder if this was a pump and dump digg.... Wu doesn't state what his holdings in Apple are. I'm guessing he has quite a bit that he isn't revealing in the article. Go journalistic integrity!
  • EEdesigner, on 05/12/2008, -2/+7Apple - please, oh PLEASE, give me an iphone on Verizon. I've heard that ATT sucks, but it REALLY sucks where I live. Verizon may have problems (I have not had any), but their coverage has been superb.
    • TROY7, on 05/12/2008, -1/+1Give me the iPhone on US Cellular... Oh, wait... Like that'll ever happen...
  • TROY7, on 05/12/2008, -0/+2Shaw Wu may actually be right about something for once...
  • CIAVT, on 05/12/2008, -1/+2My question is in all these new area's that are getting the iPhone, will they have visual voicemail also? If multiple international carriers can now have the iPhone in the same region (as rumored) will both have visual voicemail? VVM is one of the most underrated yet awesome features of the phone.
  • LuCiFer6, on 05/12/2008, -0/+9I'm still kicking myself for not buying Apple Stock when it dropped to 147 early last month.
    • mrmworth, on 05/12/2008, -1/+2that's exactly when i bought. let me tell you... feels good.
    • pw378, on 05/12/2008, -0/+2But will you kick yourself when the stock is at $250 and you didn't but it at $188?
      • LuCiFer6, on 05/18/2008, -0/+1OH don't worry I learned my lesson with not buying at 147 and bought some shares when it was 187.
    • PDAIsAOk, on 05/13/2008, -0/+2Im still kicking my dad for not buying it when I told him to at $63
  • DCTransplant, on 05/12/2008, -1/+5I'm still not buying an iPhone until they offer carriers in the US other than the arrogant, thieving AT&T. Apple stock, however.....
    • cthellis, on 05/13/2008, -0/+1Unfortunately, the other major option is that arrogant, thieving Verizon, so...

      Hopefully we'll get an option that can be used on any of the networks soon, so that we can pick the arrogant, thieving carrier of our choice! ;-)
  • bernandoo, on 05/12/2008, -0/+6This is coming from the guy who downgraded aapl 2 days before earnings... seems like he's now following the market, which kinda kills his credibility.
    • SillyRabbits, on 05/13/2008, -0/+2Even though it's free, unsolicited stock advice will almost always cost you. Either the person doesn't know what they are talking about, and just want to pretend they do. Or, they do know what they are doing, and want you to react in a particular way.
  • PhoneBat, on 05/12/2008, -0/+0I demand an Iphone & maybe a sandwich, right now.
  • jo21, on 05/13/2008, -2/+2470 millions phone of thats what nokia will sell this year.
  • jfujita, on 05/13/2008, -1/+2Sounds like a good time to short AAPL
  • intilli4, on 05/13/2008, -0/+1Anyone want to buy some apple stock for me?
  • DaveClarkOne, on 05/13/2008, -2/+1I'm shorting RIM (60 PE!) and staying long on Apple. The naysayers just don't get the BIg Mo behind the iPhone agreements worldwide and the Mac sales. Apple is a stronger Co. today than when it peaked at $200 five months ago. My crystal ball says Apple at $250 by October. There will be dips but without the roller coaster ride we saw first quarter of 2008. Yeah baby!
  • PhrozenDemon, on 05/13/2008, -0/+0I would buy an iPhone today if It was available on Verizon with all its features.
  • dognose, on 05/13/2008, -0/+1Uhm, going up 10% is not "skyrocketing" .. It's already gone up that much in a few weeks.

    If the near term price target was $400, then, i would call it skyrocketing.
  • peterinjapan, on 05/13/2008, -1/+3SUDO BRING IPHONE TO JAPAN
    Thank you.
  • speedwank, on 05/13/2008, -1/+1Dugg by a happy AAPL shareholder. Bought my damned face off in Jan '05 at 34 and change, loved the 2:1 split shortly thereafter. Spent my bonus (and then some!) on even more at 35 1/2. Sitting on it now, haven't sold a dime's worth, don't intend to. The Buffets of this world recommend "buy & hold" so hell...if it works for the truly big guys, I figure the same philosophy surely has to hold good for this little fella too.
    So..yeah..."bring on more of that iPhone goodness" :D :D
  • akuzi, on 05/13/2008, -4/+3Apple is sitting on three businesses that are pretty much guaranteed to grow for many years, Macs, music + smart phones.
    Prediction: Apple's market capitalization will overtake Microsoft's around Xmas 2009.
    • locojones, on 05/13/2008, -1/+1Really? What products do they have that are smart phones again?
  • yanivbl, on 05/13/2008, -0/+1I can't wait for Apple to step into the the video games console market. Just imagine what it would the iConsole be like.
    • mrBitch, on 05/13/2008, -0/+1Nintendo has already built an iConsole, it's called the Wii.
  • MrViklund, on 05/13/2008, -1/+2It may? It MAY? What the hell is this for kind of news?
    • cthellis, on 05/14/2008, -0/+1Well the thing is, you see... it might not!
  • myuserid, on 05/13/2008, -0/+1come on Apple make me some more money =)
  • tmcdigg, on 05/16/2008, -0/+1Digg should have no business promoting Apple's stock price here, this IMHO is just as bad as the OIL Speculators who are really sticking it to the consumer. Given time, these higher prices will creep into your Apple gadgets too. Except, you'd unwittingly blame it on high transportation costs... no, just a greedy corporation looking to make big bucks on dopes who buy whatever this company sells, where at least ONE other company has the same/similar products at cheaper cost.
  • daganzi, on 05/21/2008, -0/+0While there isn't any discounts if you buy iPhone from AT&T or Apple directly, you can get $50 cash back from DealDigs.com if you place your order through it. Just go to dealdigs.com and search for iphone, you can find it. After the $50 cash back, the current price for a 8GB version would be $349.
  • AFLaxMid, on 09/27/2008, -0/+0Apple cooperation has led the industry in ovation and creativity. The successful businesses of the future will be the ones who can sell value in the form of delivering information to paying customers. The I Phone is just one example of Apples successes I am very impressed and expect great things from apple in the future.
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