If the Apple iPhone 5 turns out to be the blockbuster product that nearly everyone expects, it should easily carry the company's stock to $800 and beyond.
The long-anticipated next-generation iPhone is expected to debut at an Apple Media Event Sept. 12 and go on sale Sept. 21.
Rumored improvements such as a bigger 4-inch screen and 4G LTE network compatibility have heightened consumer anticipation, even slowing sales of the current iPhone 4S.
A recent survey of more than 4,000 American consumers by ChangeWave Research indicated that many can't wait to give their money to Apple Inc. (Nasdaq: AAPL).
"Advance demand for the iPhone 5 is strikingly higher than we've seen for any previous iPhone model," Paul Carton, ChangeWave's vice president of research, told Computerworld.
In addition, extraordinarily positive guidance from several iPhone component suppliers hints that Apple has ramped up production like never before. Cirrus Logic (Nasdaq: CRUS) forecast a 70% sales increase for the current quarter. Omnivision (Nasdaq: OVTI) said it expected revenue to jump 38%-50%.
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And with Apple's huge patent case victory over Samsung two weeks ago casting a cloud over the iPhone's Android-based competitors, conditions are ideal for a huge iPhone 5 launch.
In a note last month, Piper Jaffray analyst Gene Munster, predicted the Apple iPhone 5 would be "the largest consumer electronics product upgrade in history." He forecast the iPhone 5 will sell 6-10 million units within its first 10 days.
Another analyst, Horace Dediu of Asymco, has projected iPhone 5 sales of about 170 million units over the next year, which would beat first-year sales of the iPhone 4S by about 70%.
Given that the iPhone contributes more than half of Apple's profits, any large increase in iPhone sales will deliver a mammoth boost to the bottom line. And those rapidly rising profits will keep pushing AAPL higher.
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Apple iPhone 5 Demand Alone Will Push Stock Price Past $800
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Microsoft-Nokia Deal Doesn't Guarantee a Spike in Smartphone Market Share
While two major research firms predict that the February deal struck between Microsoft Corporation (Nasdaq: MSFT) and Nokia Corporation (NYSE ADR: NOK) will result in a huge jump in smartphone market share for Windows Phone, such gains won't come easily - if at all.
The two companies announced on Feb. 11 that they would jointly enter the mobile smartphone market - in what some might call a "shotgun marriage" - with Nokia making the hardware and Microsoft proving the operating system (OS).
Each company has lost significant market share over the past few years, starting with the debut of Apple Inc.'s (Nasdaq: AAPL) iPhone in 2007. When Google Inc.'s (Nasdaq: GOOG) Android landed the next year, its meteoric rise created a crisis for both Nokia's Symbian and Microsoft's Windows Mobile operating systems.
The two companies announced on Feb. 11 that they would jointly enter the mobile smartphone market - in what some might call a "shotgun marriage" - with Nokia making the hardware and Microsoft proving the operating system (OS).
Each company has lost significant market share over the past few years, starting with the debut of Apple Inc.'s (Nasdaq: AAPL) iPhone in 2007. When Google Inc.'s (Nasdaq: GOOG) Android landed the next year, its meteoric rise created a crisis for both Nokia's Symbian and Microsoft's Windows Mobile operating systems.