Forbes: China growth will propel AAPL shares to $547 in the next nine months

Eric Jackson at Forbes has written a piece with some astounding numbers about Apple's business in China. Most impressively, Jackson thinks that because of Apple's China business, Apple shares will hit $547 per share by January 2012, which is only nine months away. That's an impressive upswing from AAPL's closing price of $348.51 yesterday.

Jackson opines that Apple's four current Chinese Apple stores bring in US$1.3 billion per year, per store. With Apple set to open as many as 25 retail stores in China, and the Chinese "gaga for Apple," that means Apple's Chinese retail stores alone could draw in another US$32bn a year for the company. That's not counting iPhone sales through carrier stores, Apple's online China store or Cybermart, Apple's largest third-party retailer (owned by Foxconn). Cybermart has only 34 retail outlets today, but it's planning on building up to 500 locations in the future, each with its own special Apple Shop within the store (much like Best Buy's Apple Shop store-within-a-stores).

With the second largest economy on the planet, it's no wonder that Jackson sees China as key to Apple's future growth. And it's likely that China will propel Apple to its first $100bn+ net revenue fiscal year ever when Apple's fiscal year ends in September.

Disclaimer: The author holds a position in AAPL. TUAW does not provide investment advice; consult an expert before buying or selling equities.

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Source: http://blogs.forbes.com/ericjackson/2011/03/31/how-big-could…

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Eric Jackson at Forbes has written a piece with some astounding numbers about Apple's business in China. Most impressively, Jackson...

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troy14

I'm not a huge fan of tech stocks because the market can change so violently when the "next big thing" catches a little steam, but I'm definitely interested in the prospects here. My biggest concern with Apple is their ability to meet the growing demand for products, and more importantly innovation. I've seen more than one good company go down in flames because they couldn't handle the growth - ironic really, because that's what every company should be in business for.

May 03 2011 at 8:16 AM Report abuse Permalink rate up rate down Reply

go.windsor

Yes, I agree.

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April 10 2011 at 12:38 AM Report abuse Permalink rate up rate down Reply

Laowaiblog

China is definitely GAGA over Apple, and for a good reason: its products are new technologically and the Chinese have never seen anything in that capacity. That is why the potential is so great and that is also why these share numbers are not that farfetched..

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April 01 2011 at 12:54 PM Report abuse Permalink rate up rate down Reply

Ed d.

disclaimer: I own apple stock.

Hold of a second before you buy any based on the Forbes article, though. Eric Jackson's projections are based on many straight-line extrapolations that likely just can't/won't happen. Even if a single store were to generate $1.3b, that doesn't mean 10 stores will generate $13b. That's just not the way supply and demand (usually) work. Then again, this is Apple...

Also, the TUAW summary says $100b 'net income' where it should say 'revenue.' The two are quite different as the former implies over 600% growth while the latter 53%.

April 01 2011 at 9:44 AM Report abuse Permalink rate up rate down Reply

Matt

"With the largest economy on the planet, it's no wonder that Jackson sees China as key to Apple's future growth. "

Except that China is the world's second largest economy, after the US. Give it another 10-20 years, though, and China will be number one.

April 01 2011 at 9:42 AM Report abuse Permalink rate up rate down Reply