Apple quadruples iPhone TAM, stock set to take off
updated 02:20 pm EDT, Fri May 16, 2008
Munster on iPhone TAM
Analyst firm Piper Jaffray on Friday offered analysis of the recent additions of many new carriers and countries to the iPhone fold, pointing out that Apple could quadruple its total addressable market share from 153 million potential subscribers to 575 million in 42 countries. In a note to investors, senior analyst Gene Munster says the recent agreements with Orange, Vodafone, SingTel, American Movil, and Swisscom put Apple's international rollout of the iPhone eight months ahead of schedule.
Munster feels that the agreements are not exclusive, with eight of the carriers sharing four countries. This goes contrary to Apple's earlier deployment strategy, with AT&T, Orange, O2, and T-Mobile all having exclusive distribution rights in their own countries. Munster believes that this will have a positive effect on overall unit shipments, but negatively impact iPhone revenue share.
Overall, Munster sees the situation as a growth opportunity for AAPL stock, citing that share pricing will be heavily reliant on units currently in shipment. The recent announcements solidify Munster's estimate that Apple would ship 12.9 million iPhones by calendar year-end.
Fresh-Faced Recruit
Joined: Jul 2004
3G iPhone
The worst kept Apple secret ever, the 3G iPhones, with iPhone 2.0 software, larger capacity, more features and perhaps a surprise or two. This is going to make the iPhone a very attractive device. I may even upgrade my 1 year old phone to the new phone. I think Apple may have the capacity to ship more than even Munster is estimating (which is incredible). It should be interesting, and hopefully good for us APPL stockholders.