Tuesday, November 23, 2004

AAPL to hit 100 bucks?

On news that Piper Jaffray had pushed the target price of AAPL to US$100 (based on a survey of 200 iPod users), the stock climbed to new heights yesterday. Hitting over $62 and closing at $61.35, AAPL's value grew 11% in just one day.

It's curious that the iPod can cause such a stir, but it seems the iPod is seen as the saviour of Apple. Of course, sales of the iPod continue to skyrocket as Apple revolutionizes the music industry, but the iPod is also seen as the stimulus to Mac sales. The perceived halo effect is alive and well.

However, one wonders how long the ride will last. Apple has a bright future, but it does seem that everyone is ignoring the many issues Apple has been facing, such as chip constraints, repair costs (eg. iBook logic board program), etc. One can only hope that Apple can keep the momentum going.

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