So estimates Societe Generale, which has raised its Apple price target to $105 per share.

By Philip Elmer-DeWitt
June 18, 2014

“Most Apple commentators focus on Apple’s hardware business, which is unsurprising given its size,” writes Societe Generale’s Andy Perkins in a note to clients Wednesday.

“However, tucked away in the notes and management commentary are some intriguing details about app revenues. Using these details we calculate that apps are one of the few areas at Apple showing very good sales growth (100%+ in 2013) and are an increasingly important source of operating profits (8% of the total in 2013). We think this area is poorly understood but could be a key growth driver for Apple’s future profits.”

In a report jam packed with charts and graphs, Perkins raises his Apple  AAPL  price target to $105 per share ($735 in pre-split dollars).

Below: His slide show includes this chart, which breaks down Apple’s sales by category and puts the app’s stores 8% in perspective.

 

Click to enlarge.

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