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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: XoFruitCake who wrote (128984)	3/23/2012 9:40:32 AM
From: pyslent	Read Replies (1) \| Respond to of 213173

"The would have to sell 372 million unit in a smart phone market that is about 789 million unit" It's pretty hard to predict where growth in the iPhone will plateau. Prior to the iPhone, phones that carried a wholesale average selling price (ASP) greater than $450 constituted 1% of the global handset market. Now you are talking about 40% or more in 2013? It boggles the mind. I don't think there is enough money in the world to support this kind of growth in the iPhone. Your numbers imply iPhone revenue of $242 billion in 2 years. The entire handset industry generated maybe $150 billion in revenue in 2011. I don't think Apple can reach that kind of market share without a lower priced offering. Luckily, the street also does not expect iPhone to double sales every year. Your figures for 2013 suggest that Apple could earn $120 billion from the iPhone alone, remarkable growth for a company currently trading at a PE of about 15. If 100% annual growth were priced in, Apple would be worth much more right now.