How Much Cash Will Apple Have in 2013?

Sep 7, 2011
J. Webster
Comments Off on How Much Cash Will Apple Have in 2013?

Piper Jaffray’s Gene Munster says Apple will have $140 per share in cash, nearly double what they have now, which is $82 per share, in 2013. Wow, that’s a lot of money.

With that much cash, you’d have to say the share price is going to rise in a proportional manner. If you add $300 on to the cash per share you get the current price for Apple of near $384 per share. If you add $300 on to Apple with a cash hoard of $140 you’d get a share price of $440, but with that much cash earned, you’d have growth in actually earnings across the board board of Apple products. So, perhaps a share price of $740 is more like it. Towards the end of 2013 this might just be possible. Believe it.

Munster also says that investors are underestimating Apple’s potential for growth in 2013. To me, this seems right, especially when you factor in the potential for growth in China for Apple – more stores will open. And then if Apple can make further inroads into the business or enterprise sector:

Analyst Gene Munster’s estimates are 8 percent ahead of Wall Street’s 2013 expectations for revenue, and 10 percent higher than the Street’s earnings per share forecast. Munster sees Apple’s revenue growing 19 percent in calendar year 2012 and another 17 percent in 2013.

He also sees Apple’s cash hoard continuing to grow over the next few years, reaching $140 per share at the end of 2013, compared to $81 per share in June 2011.

Apple’s growth will continue to be propelled by the iPhone, in Piper Jaffray’s estimates, representing 49 percent of revenue in calendar 2013. Their model has iPhone growth go from 30 percent in calendar 2012 to 29 percent in 2013, while average selling price will drop from $603 in 2012 to $565 in 2013.

“One key topic on which we are different than consensus thinking is our belief that the iPhone unit growth can continue in the 30% range while ASP’s will be more than double the smartphone industry average,” Munster wrote.

“In other words, we do not believe Apple needs an ultra low end offering to grow iPhone units at 30%. If Apple was to announce an unsubsidized, sub-$200 iPhone, our unit estimates would be too low and ASPs would be too hight.”

The thing will Apple is there just isn’t any competition now or on the horizon. Research in Motion is fading. Microsoft is fighting the good fight. Google is perhaps mounting an attempt to battle them. But, for the next few years there’s nobody really with the array of products Apple has. People are going to buy the newest gadget from Apple. If they have the old iPhone they want the new one. If they have the old iPad, they want the newest one. Apple’s only competition is their old products and how much better and faster they can make the new ones.

Source: Apple Insider:

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