Monday, December 12, 2011 11:36:43 AM
By Tiernan Ray
JP Morgan’s Mark Moskowitz this morning reiterates an Overweight rating on shares of Apple (AAPL), writing that the company’s “Macbook Air” laptop may turn out have much higher sales than he’d initially thought, even though he’s been enthusiastic about the business potential for some time.
Moskowitz observes that Air shipments of 923,000 were 44% higher than the prior quarter, higher than the 17% quarter-to-quarter growth in Mac units, and the fourth quarter of accelerating sales growth.
In previous reports, we had highlighted the MacBook Air as a potential $2-3 billion-plus revenue opportunity. Based on the continued momentum of the product and our conversations with industry participants, our view has become even more constructive. Over the next 12 months, we believe that the average quarterly run rate could reach 1.6M units, which implies a $7 billion-plus revenue profile.
At an average price of $1,150, the Air would produce $1.84 billion per quarter in revenue for Apple, or $7.36 billion a year, he calculates, and contribute 71 cents per share in profit annually.
Moskowitz also thinks sales to China will boost Mac growth “as the company continues to expand and deepen its market coverage” in China.
Moskowitz thinks the competing product, the “Ultrabook” laptops heavily promoted by Intel (INTC), “lacks the right blend of features and attractive price points to grab market share.”
Recent AAPL News
- Nike Shares Surge 7% Pre-Market as Elliott Hill Becomes CEO; FedEx Shares Tumble 13% After Profit Miss • IH Market News • 09/20/2024 10:02:58 AM
- Meta Strengthens Child Privacy on Instagram; Google Overturns $1.7 Billion Antitrust Fine; Snap Updates Spectacles • IH Market News • 09/18/2024 10:13:07 AM
- Microsoft Boosts Share Buyback, Raises Dividends by 10%, Intel Secures Chip Deal with Amazon • IH Market News • 09/17/2024 10:40:35 AM
- OpenAI Unveils Strawberry AI Model Series; Boeing Stock Falls 4% Amid Strike; HR Surges 20% on Growth Forecast • IH Market News • 09/13/2024 10:12:55 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/10/2024 01:06:34 PM
- Apple Loses EU Dispute; Google’s $2.7 Billion Fine Upheld; Oracle Shares Surge 9% • IH Market News • 09/10/2024 10:02:31 AM
- Apple introduces groundbreaking health features to support conditions impacting billions of people • Business Wire • 09/09/2024 06:41:00 PM
- Introducing Apple Watch Series 10 • Business Wire • 09/09/2024 06:36:00 PM
- Apple introduces iPhone 16 and iPhone 16 Plus • Business Wire • 09/09/2024 06:36:00 PM
- Apple introduces AirPods 4 and the world’s first all-in-one hearing health experience with AirPods Pro 2 • Business Wire • 09/09/2024 06:36:00 PM
- Apple Watch Ultra 2 now available in black titanium • Business Wire • 09/09/2024 06:36:00 PM
- Apple debuts iPhone 16 Pro and iPhone 16 Pro Max • Business Wire • 09/09/2024 06:36:00 PM
- Dell, Palantir, and Erie Will Be Added to the S&P 500; Boeing Avoids Strike; Apple Event Takes Place Today • IH Market News • 09/09/2024 10:05:35 AM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- Nvidia Subpoenaed by DOJ, Athira Pharma Shares Plunge 71% After Study Fails, Zscaler Falls 15% Post-Earnings • IH Market News • 09/04/2024 09:50:25 AM
- Big Lots Falls 27%, Considers Bankruptcy; DraftKings Acquires Simplebet, Berkshire Hits $1 Trillion • IH Market News • 08/29/2024 10:06:50 AM
- High Volatility Expected in Nvidia Report, Ambarella Soars 20%, Hertz Strengthens Board, Apple Cuts Jobs • IH Market News • 08/28/2024 09:50:36 AM
- Apple Names New CFO, Sony Hikes PS5 Price in Japan, Santander Launches Share Buyback • IH Market News • 08/27/2024 09:35:22 AM
- Stacks Prepares Nakamoto Upgrade, Record Bitcoin ETF Inflows, Semler Scientific Expands Bitcoin Reserves • IH Market News • 08/26/2024 10:35:56 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/26/2024 09:20:33 PM
- Apple announces Chief Financial Officer transition • Business Wire • 08/26/2024 08:30:00 PM
- IBM Closes China Research Division, Uber Fined $324M, Starliner to Return Without Astronauts • IH Market News • 08/26/2024 12:58:21 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/23/2024 08:30:44 PM
- Cruise and Uber Join Forces for Robotaxis, Alibaba Shifts Primary Listing to Hong Kong, Altria Hikes Dividend 4.1% • IH Market News • 08/23/2024 12:20:26 PM
- Schwab and Snowflake Retreat in Premarket, WeRide Postpones IPO, Halliburton Cyberattack, McDonald’s Instagram Hack • IH Market News • 08/22/2024 09:37:42 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM