BloggingStocks: ‘Apple is a phenomenon’
Monday, April 09, 2007 - 04:25 PM EST
"Apple, Inc. took out a full page advertisement in today's Wall Street Journal simply stating that 100 million iPod's had been sold since the device's inception," Georges Yared writes for BloggingStocks. "The simple tagline reads 'Thanks to music lovers everywhere.'"
"Apple is a phenomenon because of several profitable and still growing moving parts. The fact that Apple has sold its one hundred millionth iPod, and commands a dominating marketshare of 70% is itself phenomenal, but the market is still vastly under-penetrated. Many consumers are already on their 2nd and 3rd versions of the iPod. The number of individuals that have purchased the device is about 40 million ( Apple has been hesitant about giving out that specific number). When one considers the size and the scope of the market--world-wide-- the penetration level of potential buyers is far, far away from saturation," Yared writes.
"What is beautiful about the financial model for Apple is the recurring revenue theme. As consumers buy the iPod, a huge percentage of them then open an account with the iTunes store and the Apple cash register just keeps on ringing," Yared writes.
Yared writes, "When the iPhone rolls out in June, Apple's advantage is the massively happy installed base of customers. The missionary sales cycle will be by-passed on this product. The early adopters alone will drive huge incremental revenue... The new and improved Mac computer is another budding phenomenon within Apple. That, with improved CPU units, software enhancements and other product improvements gives Apple a multi-pronged approach to their revenue model... The phenomenon that has become Apple will continue for another 3-5 years."
Full article here.
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3-5 years? Bah
Tipping point is ahead, that alone will give Apple 10+ years!