Keith Bachman, analyst with BMO Capital Markets, has cut his price target for Apple’s stock, saying that iPods and iPhones were no longer “growth drivers” for the company. “Apple’s three growth drivers [iPods, iPhones and Macs] has now turned to one,” Bachman said in an analyst note.
Bachman went on to say that the Mac will begin to take on more importance because the iPhone is not likely to experience growth on the scale of what the company has projected for this year. He also pointed out that the iPod is starting to show signs of market saturation, leading to slower growth rates for the device.
Despite the somewhat gloomy predictions, Bachman maintained his outperform rating on Apple’s stock, noting that “more carriers and lower handset [prices]” could improve the iPhone’s prospects. Bachman reduced his forecast for iPhone sales in fiscal 2008 from 9.3 million to 7.7 million units, and also reduced his iPod sales forecast for the same period, from 54.6 million to 51.1 million units.
