Why Apple will go to $300


Apple Mac (NASDAQ: AAPL) I wrote last week that I have moved my price target on Apple Inc. (NASDAQ: AAPL) for the umpteenth time and it now is set for $300 within 12 months. The company has so much momentum in all of its products, and margins are holding up and in fact could be expanding.

The December quarter will be announced in late January, and expectations are set for $9.32 billion in revenues and earnings per share of $1.52. I believe Apple will exceed these expectations -- again -- and of course forward numbers will be raised once again.

Besides the iPod, the iPhone, and the new Mac with the new Leopard operating system, the other variable in the story is difficult to quantify. That variable is Apple's retail stores and the feeling a consumer gets while visiting one. I went to one over the weekend and was in the store for over an hour, just observing the customers and the sales staff. Man, it was unreal.

Yes, the malls were busy this weekend before New Year's Day, but the Apple store was busier than most of its neighboring stores. The one I visited in the Ridgedale Mall in Minnetonka, Minnesota. is a small store in comparison to the flagship Minneapolis Great Mall of America store, yet it was comfortable and there was a buzz. The amazing part of the Apple stores is nothing is "on sale." No need for sales, the stuff just sells like hotcakes.

I got a Leopard demonstration from a helpful and friendly salesperson named Thomas. He was incredible. He bought a new Mac a few months ago, was so enamored with its features and benefits that he applied for a job at the Apple store. His part-time job has turned into 40+ hours per week. Thomas is a physical education teacher at a local middle school and works full time at Apple. He gave me a wonderful demo of the Leopard and I could see his enthusiasm building -- he was actually having fun. His explanations were terrific and easy to follow for a non-geek like me.

Yes, I am going to buy one -- I got hooked as well. I also am going to buy the new iPod with the touch screen. So simple to use and navigate.

Salespeople like Thomas don't fake it with a cursory "may I help you?" He really meant it. His passion for the products permeates the customer like me.

Oh yeah, Apple is going to $300 within 12 months. The driving force behind the success of any enterprise is its people. With people like Thomas, Apple has nothing to worry about.

DISCLOSURE: At publication time, Georges Yared owns Apple stock.

Georges Yared is the CIO of Yared Investment Research and the author of Stop Losing Money Today.

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Last updated: February 10, 2012: 06:27 AM

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