Support Our Site
Get Better Gear!
- Theodolite App for iOS is Breathtaking from Hunter Research and Technology, US$3.99 (Pro and HD versions)
- Akron’s TAB802 Table Mount For iPad Is Sturdy from Akron, US$99.95
- Dinosaurs Roar to Life on the iPad with Stephen Fry from M58959 Studios, US$14.95
- Poldera’s iKeep Holds Your iPhone Close from Poldera LLC, US$19.99
- Mediadevil’s Easyscreen Screen iPad Protector Is Unusual from Mediadevil, £16.97 (US$22.09)
Top 5 Free Apps
iTunes New Music Releases
Top 5 Paid Apps
Discover New Music
- Alanis Morissette
- Ten years after the original release, comes the traditional celebratory acoustic re-recording. The album has held up remarkably well. While it is not as meaningful to me as it was when I was sixteen,
- Brother Love
- Killer grooves, catchy riffs, edgy vocals with oh-so-just-right layered harmonies, and a drive that will move even YOU out of your chair, Brother Love's initial release is what rock and roll should be
- Led Zeppelin
- This album bears every flavor of genius from the five records that came before. It is, I believe, the band's finest. With Physical Graffiti, Zep came raging back to their musical home territory -- har
- Powderfinger
- Guitar-driven rock out of Australia, Powderfinger has not seen much exposure in the States, but should get a nod for their toe-tapping songs. Building off their previous release, "Internationalist" (
- Jesus Jones
When you think of Jesus Jones, chances are you can't remember them at all, or you vaguely remember "Right Here, Right Now" because it has been use
Reader Specials
Visit Deals On The Web for the best deals on all consumer electronics, iPods, and more!
News
Apple’s iPhone Fees Fuel Analyst Assessments
Wednesday, November 7th, 2007 at 3:00 PM - by John Martellaro
Earnings have been a traditional way to assess a companys stock price, but Apples new revenue model for the iPhone has some analysts also looking at multiples of cash flow, according to Bloomberg News on Thursday.
When the AAPL stock price reached US$100 early this year, some analysts predicted that $200 was in sight. While that prediction brought heavy criticism, those analysts are now being vindicated because of the new way some are assessing Apple stock. Moreover, they expect it to keep rising in the long term.
Basically, the iPhone is capable of generating a steady flow of cash thanks to the payment Apple gets from AT&T for every phone sold.
"EPS [Earnings per Share] significantly understates the value of the company," said Daedaluss fund manager Stephen Coleman. "We have to wait 24 months to track the full impact of a unit sale today on earnings per share."
Robert Semple of Credit Suisse as well as Christ Whitmore at Deutsche Bank have started to use multiples of cash flow rather than just earnings to predict Apples stock price. In fact, a total of 12 analysts have raised their target price above US$200.
Apple has declined to disclose how much it receives from AT&T each month for each iPhone activated, but estimates put the number between $10 and $20. However, iPhones that are unlocked dont contribute to that revenue, so investors look kindly upon Apples efforts to ebb the flow, including a recent move to limit iPhone purchases that might lead to grey market sales.
For Gene Munster at Piper Jaffray, there are two keys. "[First] The shipments in any given quarter are laying the foundation of whats going to happen in the future," he said. "[Second] People are having trouble getting their arms around it because they think its too good to be true." Munsters recommendation is buy.
In afternoon trading Thursday, APPL was at about US$172. However, the cause appears to be driven by an overall market reaction to Fed Chairman Ben Bernankes comments about the general state of the economy.
<!--#include virtual="/includes/newsite/series/stockwatch.shtml"-->
In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.
Recent Headlines
- Chinese Authorities Seize Apple iPads in Trademark Dispute
- AT&T Begins Process Toward Offering Shared Data
- OnLive Desktop: Windows & Office on Your iPad
- Battle Pocket Bulge With The Hint for iPhone
- Theodolite App for iOS is Breathtaking
- Forum Poll: Are You Planning on Buying a New iPad?
- Apple Highlights Siri in Two New iPhone 4S Ads















Post Your Comments