Writing in the wake of Apple's results for the summer quarter, analyst Ben Reitzes raises UBS estimates for Apple stock to $220 and notes that the predicted halo effect manifested itself in an across-the-board jump in Apple's success with its products, particularly with Mac sales beating estimates by more than 10 percent, at 2.16 million. The higher than estimated iPhone sales of 1.12 million during the three-month period also show that the iPhone's momentum is not slowing down and is likely to spill over into the holiday season, creating an upside for investors as publicity for the iPhone encourages sales in other categories.
Reitzes also goes so far as to suggest that Apple's deck may be heavily stacked for the first few months of 2008 and should drive additional growth in the first calendar quarter, noting the possibility of new ultraportable devices, gaming initiatives, and iTunes video rental services. Significantly, the UBS analyst hints that the iPhone should see a major expansion in the next few months with a refresh due before springtime, potentially reinforcing the halo effect once more.
"We expect Apple to make an announcement on additional international iPhone carriers in the coming months," he says, "and our contacts in the supply chain point toward a new iPhone model to be released by March."
The expert does not elaborate on whether the upgrade is an entirely new class of iPhone or a change to existing models.
More: