Apple Update. Revenue Growth May Surpass 50% Through 2012. Bullish

[ 0 ] March 24, 2011 |

Apple has been our long standing favorite company to own since the beginning of this blog and before. We were reading this article now on Bloomberg and wanted to share it on the site as it is in line with our extremely bullish thoughts on Apple. Top analysts share target estimates range from $450.00 to as much as $600 per share through 2012. We remain buyers on weakness and we also believe that if there is no serious problem with components from Japan in the near to mid term, the shares could rise to the $400.00 per share level in the not too distant future.

Apple’s Revenue May Grow 50% Through 2012 on Mobile Boom (3)
2011-03-24 20:17:42.856 GMT

(Updates with closing share price in sixth paragraph.)

By Katie Hoffmann
March 24 (Bloomberg) — Apple Inc. can keep posting sales
growth of more than 50 percent in the next two years as a mobile
applications boom fuels demand for devices such as the iPad,
said the chief executive officer of Forrester Research Inc.
George Colony, who founded Cambridge, Massachusetts-based
Forrester in 1983, outlined his predictions in an interview at
Bloomberg’s headquarters in New York.

Apple sold almost 15 million iPads in its debut year and
more than 90 million iPhones in its four-year lifespan. Demand
for the devices has spawned a market for downloadable apps that
let users shop, work, play games and handle other tasks on the
go. That in turn keeps customers buying Apple’s products, and
puts the company on course for higher revenue than International
Business Machines Corp. and Hewlett-Packard Co., Colony said.

“They’ll be bigger than IBM next year, and they’ll be
bigger than HP the year after that,” Colony said, citing
Apple’s 52 percent sales growth last year. At current growth
rates “they’re going to be a $200 billion revenue company,” he
said.

Hewlett-Packard had sales of $126 billion in the year that
ended in October and IBM’s revenue was $99.9 billion last year,
making them the largest technology companies, respectively, by
sales. Apple ranks No. 1 by market capitalization.

Apple, based in Cupertino, California, rose $5.78 to
$344.97 at 4 p.m. New York time in Nasdaq Stock Market trading.
The stock has added 7 percent this year.

App Internet

Apple’s sales may climb 54 percent to $100.3 billion this
fiscal year, which ends in September, the average prediction of
analysts surveyed by Bloomberg. Growth may slow to 18 percent
the following year.

Forrester, which advises executives and issues technology
forecasts, has more than 2,500 customers and generated $250.7
million in sales last year.

As more consumers and businesses access entertainment,
productivity tools and other services by way of apps — creating
what Colony calls an “app Internet” — the less likely they
are to rely on the traditional Web, he said.

Device makers aren’t the only companies that are poised to
benefit from the trend. Building and managing such applications
will create a $35 billion market opportunity, he said. Startups
and corporations alike are experimenting with them, he said.
Hilton Worldwide Inc. is working on software that will let
visitors open a hotel door with an iPhone.

Companies that help manage the apps with services, such as
Indian-based Tata Consultancy Services Ltd. and Infosys
Technologies Ltd., also stand to gain.

‘New Stuff’

The challenge for Apple may be navigating the industry when
founder Steve Jobs leaves the company. Jobs has battled a rare
form of cancer and since January has been on medical leave, his
third in the past seven years. The company has probably built a
product pipeline to last it three to four years after Jobs
leaves, Colony said.

“Remember, every two years they have to fill that store
with new stuff,” he said of Apple’s retail outlet. “Without
Steve Jobs as the CEO, I think it will be much harder for them
to do that. That would be a massive, massive hit to the
valuation.”

Several companies aren’t moving quickly enough to keep up
with the new applications, he said. Facebook Inc. has been slow
to update its iPhone app and build an iPad app, “risking
massive disaster,” Colony said.

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