If the new MacBook will cost $900…

This boldly move (if it’s going to happen), would grow Apple’s addressable market by 67%.

“We are upgrading Apple to Outperform - while reducing our target price from $175 to $135,” (analyst Toni Sacconaghi wrote in a research note to clients). “We believe that the stock is overly discounted, that Apple’s short-term financials are likely to remain relatively healthy despite economic weakness, and that the company’s longer term growth story remains intact.”
“We feel confident that Apple will be a share gainer, as the company continues to expand distribution and purchase intention remains high,” the analyst wrote. “Perhaps most importantly, we expect Apple to lower price points to address a much broader market at some point over the next year.”

Sacconaghi also pointed to the recent internal analysis which revealed that a MacBook priced at $900 would expand Apple’s addressable notebook market by nearly 50 percent on a revenue basis, and 67 percent in terms of units. If the rumors are true and the MacBook goes on sale for $800, it would broaden the company’s addressable market by 69 percent in terms of revenue, the study found.

Predicting Apple’s share price and direction may prove difficult given a number of factors, which could lead to fluctuations between $75 and $135. The company’s upcoming revenue guidance for the December quarter could apply new pressure on shares. The Street is looking for sales just shy of $11 billion for the three-month period, but given the company’s traditional practice of providing conservative estimates, management could wind up guiding $1 billion below expectations.

Via: Appleinsider

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