This article was published on February 1, 2010

The Most Valuable Part of Apple’s Business? The iPhone.


The Most Valuable Part of Apple’s Business? The iPhone.

iphone_expensiveEver wondered how the numbers stack up? New data from Trefis shows us a breakdown of how different revenue streams make up a company’s share price. Looking at Apple, Trefis estimates that iPhone sales account for 54% of its share price, whilst sales of Macintosh computers make up just over 21%.

With apps being the hot topic for 2010, how much does that revenue affect the share price?

Despite the hype, sales of apps [which is bundled for analysis with music downloads] only accounts for 5.4% of the share price valuation.

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[iframe http://www.trefis.com/forecastWidget?ticker=AAPL&driver=10281′ 100% 350]

The data comes from Trefis, a new website that offers advanced business analysis helping you understand how future predictions of performance will impact on the future share price. The sexy part of this site is the ability to interrogate the data to understand what the future share price impact will be on certain criteria. So, if we had a look at changing the average song price from $.99 to $1.10 this would have boost the share price by $2 per share.

If we take the same tools and changed the future iPhone price from an average cost of $524  to $506 (which is higher than the predicted price for 2011) this would boost the share price by $60. Pretty impressive data, but no estimation of iPad sales on potential valuation.

But this is not all Trefis has to offer. Billing themselves as a financial community, Trefis allows me to share my findings through direct links, tweets, Facebook access and embedded content. The community element allows me to connect with other users which, as you may expect, is mainly financial experts. There is a function to invite Facebook friends but not Linkedin or Twitter, which seems a little odd.

The data comes from the Trefil team who spend weeks evaluating each stock using standard measurement as well as offering step by step models to see how they came to the valuations.

Did you know the Apple TV actually accounted for 2% of their share price, now that was a surprise.

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