Sunday, April 22, 2007

I want cheap AAPL shares



lets hope the Apple TV hurts earnings ths comming quarter and give us cheap shares.Earnings are expected wed. the 25th.
analyst recently came out and told us iPhone holds soo much clout that At&t is willing to pay apple a commission for each new customer the iphone generates and get a chunk of each iphones customers monthly bill. now thats a high margin cell phone. lets crunch some #'s

-Bernstien research estimates 7million iPhones sold in 2007 alone
-iphone cost minimum of $500
- 7mill x $500 = 3.5billion in the 6 months in 2007 after iphone release
- analyst estimate "low double digits" will go to apple for each monthly bill
lets say $10
-$10 x 7million = $70million a month x 6months = $420million

total revenue for just the iPhone in the 6 months after its release = $3.9billion for 6 months
that is assuming each phone purchased is the cheaper phone and thats not including commissions they will make for each new customer. to think that just from the first 6 months of sales they will get $70million virtually free cash each month is amazing, now you see why some have a target of $145 on the stock

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