Apple Inc (AAPL)

[roni]

from smarthouse.com

Hard as it is to believe, all the excitement surrounding Jobs and his new toy may actually understate the impact of this device on Apple's fortunes. Beyond the hysteria surrounding its June 29 launch, the iPhone has the potential for adding a totally new, $10 billion-a-year business within just a few years. If Apple can expand so-called smartphones from a luxury carried by corporate road warriors into an everyday tool for the masses—combining the functions of a BlackBerry and an iPod—Apple could soon see a new growth tear.

Up, Up, and Away
That's the kind of thinking that has some analysts pegging Apple's stock price at 160 and up. They contend that the blazing success of Apple's Mac and iPod lines on their own justify much of Apple's current value. JMP Securities' Ingrid Ebeling used conservative price-earnings ratio projections for 2008 to calculate that the Mac business, with revenues of $11.7 billion and net margins of 11%, would be worth $42.70 on its own. The iPod, with $10.8 billion in revenues, 12% margins, and a slightly lower multiple given slowing growth, would be worth $38.87. Add in $6.36 for other music products, $6.76 for peripherals such as Apple TV, $5.91 for software, and $14.18 per share in cash. You're already at $114.78—with no help from iPhone. �
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