Finance Wanted.

By Jared Finkel

Steve Jobs recently remarked that in its first month of operations the iTunes applications store had over $30 million in sales for its first month. Jobs predicted that the apps store would translate into at least $360 million annual increase in gross revenues for the company. Jobs went on to say that the Apple would see $500 million and possibly $1 billion in revenue from the online store soon.

The iPhone's revenue applications keep increasing. It's predicted that in addition to increased revenues, the apps store will increase sales of iPhones and other wireless devices like the iPod Touch.

In addition to the iPhone Apple is rumored to be releasing a new power book/air hybrid laptop computer. Recent reports state that apple notified Best Buy that shipments of Power Book laptops would be decreasing over the coming weeks and to structure inventory accordingly. Additionally, Apple has increased orders of LCD laptop computer screens from suppliers, and photos have been leaked showing what appear to be aluminum Mac book casings.

The anticipated release in time for the year end holidays will put Apple computers along with both iPhones and iPods at the top of many wish lists. It is expected that both the iPhone and Apple computers will see an increased presence and market share world wide

Long term it is expected that Apple TV, last years underperforming product line, will take hold and become as popular as Apple's other products. As entertainment in the home becomes more centralized with the convergence of television, movies, music, computers and the internet, Apple TV both in its current and future forms will serve as the hub to bring all these aspects together. Additionally the iTunes movie and tv stores will increase dramatically.

Apple's brand differentiation continues to be one of the strongest and most recognizable in the world. The persona of top of the line and stylistic products makes it one of the premier companies in the electronics industry.

New products, with new developing and almost monopolistic revenue streams points to continued growth, even in today's lackluster economy. Apple has positioned itself to outperform most of its competitors in Growth and profit margin explaining its obviously high P/E of more than double many of its competitors.

The Market Hawk has a target price of $204 per share for year end, and suggests its both as long and medium term holding.

TheMarketHawk