Market dubbed wrong

An article today released by Morningstar Growthinvestor analyzes Apple Computer, concluding that it has a . The value, which signficantly contrasts from Apple's current $42 per share price, is the result of Morningstar's analysis, which assumes 25 percent annual revenue growth over the next five years for Apple; significant iPod growth this year and next; and sales declining thereafter due to lower prices and increased competition: "In our view, iPod revenues will eventually decline as alternative music players emerge and the early-adoption phase comes to an end. At the same time, we think the iPod will drive increased adoption of Apple computers, resulting in the firm's PC market share (1.8% in 2004) expanding to more than 3% in a few years."

by MacNN Staff