re: I read here that about 2013 or 2014 Apple should be earning $50/share
Jefferies thinks that AAPL will earning 45.9 in fiscal 2012 (4Q11 to 3Q12).. 4Q11 is already in the pocket. The best way is to watch 1Q12 and it can tell us if Jefferies is close or not. In 1Q we have Iphone 4S rollout in China and the rollout of Ipad 3 in US (which can be negative since everyone is holding up their purchase decision)..
http://wallstcheatsheet.com/stocks/analyst-ups-apple-stock-price-target-to-699-urbn-at-31-whole-foods-a-top-pick.html/ Apple Inc. (NASDAQ:AAPL): Jefferies raised its earnings estimates for Apple above consensus and price target for shares to $699 following its trip in Asia. Jefferies is more positive on Apple’s prospects following the trip, and said it expects production of the iTV to begin in May/June. The firm raised its 2012 earnings estimate to $45.90 from $44.32 and keeps a Buy rating on the stock.
Yes, I read that, and I agree completely. This stock has room to run, yet. Unless one wants to try to time the peaks and valleys, it makes sense just to hold. Many of our regulars here have core positions that they hold, and they use options to amplify their returns.
If the Retina display (Apple does not capitalize the second word anymore, or it never did) is IP that inevitably has to be offered on FRAND terms, Apple can focus on all the other elements that make it work and not try to make the physical screen exclusive.
The display is probably the least of the proprietary elements.
The brand Retina seems to be what Apple has to itself, and with its first mover advantage, and now second mover, it is entrenched in consumers' minds, IMO.
re: The display is probably the least of the proprietary elements
Agreed. The GPU is pretty standard as well. The difficult part (apart from securing the glass) is the budget (glass are expensive. Rumor that Apple has to pay $75 a glass vs $50 for the Ipad 2 glass. For a lot of Tablet, they only make $25-50 in the best case scenario and loss money if they have to discount heavily. The part that apple spend a lot of money on is the power engineering. They need to get the battery density up and to save power since the new display need twice as much backlite (and the corresponding power) and the new GPU need more power when pushing more bit to the display. At the end, they still need to make the ipad slightly heavier and slightly bigger.. It is not a easy engineering problem nor product budgeting problem to add the display..
Why did Jefferies raised the target to a figure best suited for Used Car Dealers? What is one dollar between friends? Afraid of round number 700, or just say it is still in the six hundred level? Woz is not afraid to say that apple is going $ 1,000 and not 999.
Bought AAPL Jan 2013/520 call less than one month ago, and boy that puppy has appreciated over 75%! My wife chastised me for not buying more. Just cannot win sometimes.