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Ironfire Capital founder Eric Jackson on why he predicts Apple could rise to more than $1,600 a share by 2015.
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The jackpot grows your odds pretty much the same that's -- -- has says if you really -- guaranteed winner you buy into apple.
Because -- -- capital founder Eric Jackson says shares -- around 600 bucks now.
Are gonna go over 16100.
Bucks.
Look when you see the 16100 happen.
It's gonna take a few years -- I'm not predicting that it sold two point -- they've got two cats and time yet divider apple shares and actually think.
You know it's had such a phenomenal run in the last couple of months -- there's a good chance there might be a pullback in the near term but.
Longer term there are enormous market opportunities in front of apple and I think the good times are just starting why do you say that -- the -- You know you step back and you know a stock's price it doesn't have anything to do it how big it is relative -- other companies it has to do with its products.
And the size of that the market opportunities of those products are and and when you start to look at the iPhone iPad Macs.
And you you look at their place in their industry.
In their particular markets and how big those markets are supposed to get.
These are going to -- phenomenally in the next three years.
About -- it's personal side I don't own Apple Stock.
I'm not that that's gonna movement markets when -- the other so probably just to get that out of there what things I've always wondered looking at the stock though is.
It seems to be -- for -- protection pride and in that it.
The best case scenario is that its market share grows the -- to have the latest incarnation is.
Hot hot hot -- all.
But but this the isn't it does very little sentiment to the contrary.
And that's not always gives me just doesn't have an average investor -- mean.
Just to -- by the run up -- -- -- and how fast and far it is come that.
You know a pullback would be in order wouldn't.
-- yeah I think so mean you're talking about a stock that in November got down to 360 dollars and here it is today right 600 dollars on the nose and and I do -- -- -- with you I also get a little nervous when.
-- -- are too many you know people on one side of the boat.
And you don't have a few at least a few bears a let me ask you -- 16100.
Here that that's it I've heard need to be bizarre is gonna go to 700.
So one guys here's 725.
And -- -- guys at 730 deal would 52 cents now.
But but -- at 16100 is is the biggest -- seeing why that.
OK let me break it down for you and -- phones are the biggest part of the portfolio today for apple and I think that's gonna continue its roughly half their business.
We think about their last quarter is being added that the biggest iPhone quarter ever -- 37 million pounds.
But most people think that in the next three years are PC's aren't gonna be the primary wave we that we you know get on the Internet is gonna be through our our phones and a lot of third parties are saying that the Smartphone market will be something like one point five billion devices sold at that time.
You know I think if there's a good chance -- Apple's at least gonna maintain its market share of at least 30% so you're talking about you know roughly.
You know -- 500 million iphones that they could sell in that year.
You know that the price -- probably go down a little.
But that is still going to be an enormous part of their business ipads are expected to -- continue to grow.
Some people think the tablet market between fifteen is going to be actually bigger than what the PC market is today.
And right now -- seem to have an iPod like market share in that in that market I don't see anybody really competing with them.
If you look at Max Max even the PC industry we think of -- kind of a slow.
Growing industry -- growing 9% a year Macs are growing.
Closer to 30% a year yeah but gosh okay iPad doesn't cannibalize -- Yeah I think what what's interesting -- apple is that there's sort of this halo effect which is starting to take hold where you know there was a survey they came out this week that said.
Half of American families -- -- at least one apple products but it turns out that the people that have won not one apple product tend to have more on average.
Two to three apple products already.
And here's initially -- premium.
You did you did you know took the took about four years for apple to sell a hundred million iphones it's going to take them about three years to sell a hundred million I.
-- We expect TVs is coming up next here ITV.
I think it's gonna take two years for them to sell about a hundred million.
I TV's on there's this sort of speed up -- where he had I've got my night that I got my iPhone I'm gonna be first in line in the -- comes -- to sort of complete -- Complete my portfolio and I've got of course you got my iTunes where I've got in my music across all the devices so they've created this this this very.
-- ecosystem -- everything plays off of each other and it encourages people to get more and more of their products as time goes on.
-- -- perfectly but we'll watch it closely Eric thank you very area.
Very good seeing you Eric Jackson.
Thanks -- all right time to to.
