Why Apple TV Could be Bigger Than You Think
Jefferies analyst Peter Misek raised his Apple price target to $800 per share on Thursday, noting that the tech giant's likely to introduce an Apple TV set in the fourth quarter of this year. Foxconn's recent investment in Sharp is an integral part of getting components for an Apple TV, according to Misek, echoing TheStreet's take on the deal.
"We believe the Hon Hai/Sharp deal is due to Sharp's increasing importance to Apple and iTV," explained Misek, in his research report. "Our recent checks in Asia indicate that specialty components have begun to ship to Apple's Asia panel suppliers with polarized films, filters, and IGZO (Indium Gallium Zinc Oxide) components starting to move in small quantities."
Misek assumes the iPanel, as he's calling the device, will sell for $1,250 and have 30% gross margins, and would allow Apple to sell an additional iPad or iPhone due to the halo effect. He believes as many as 2 million Apple television sets could be sold in the fourth quarter of 2012, and 10 million in calender year 2013. The analyst raised his fiscal year earnings per share estimate to $53.98, well above the $49.20 that Wall Street is expecting.