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Merrill Lynch: Napster not a threat to iTunes

updated 12:35 pm EST, Mon March 7, 2005

Napster not a threat

Merrill Lynch is raising its estimate for iPod unit sales to 4.5 million this quarter and 20 million for the year (15 million HD-based units and 5 million iPod Shuffle units). Although iPod competition is strengthening, the firm says it believes demand for the iPod shuffle continues to outstrip supply. "We believe Napster's results show that on-line music purchases continue to grow. We do not see the small rise in absolute number of subscribers (now at 270,000) as taking share from Apple's iTunes." Merrill Lynch also reported that the average iPod user in the U.S. spends $150 on accessories. Additionally, "Apple store managers tell us that iPod interest is translating into Mac sales." Merrill Lynch reiterated its Buy rating with a price objective of $51 per share. [increased yearly iPod estimate to 20 million based on revised ML report]




by MacNN Staff

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Comments

  1. MacnTX

    Joined: Dec 1969

    0

    Finally

    Nice to see that at least someone has some sense when it comes to Napster being no threat whatsoever.

  1. evansls

    Joined: Dec 1969

    0

    raise you 5 million

    If Reuters raises their estimates that Napster is a threat to iTunes and Merrill Lynch counters Reuters by raising their iTunes estimates by 4.5 this quarter, then I call Merrill Lynch and raise 5.0 million

  1. beeble

    Joined: Dec 1969

    0

    raise

    I'll raise you 5.25. :-)

  1. LouZer

    Joined: Dec 1969

    0

    Wait!

    I just read that Napster was going to force Apple's hand into bankruptcy (or something like that). And that was from another analyst! Who to believe!

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