Apple About To Launch New Video-Focused Cloud-Based Service
Jefferies & Co. believes Apple Inc. (NASDAQ: AAPL) is about to launch a new video-focused cloud-based service. The brokerage continues to believe that the assault on the living room likely means the introduction of another Apple appliance or device. The brokerage reiterated its “buy” rating on shares of Apple with a price target of $450.
“In addition to subscription revenues, we think Apple could potentially benefit from a halo effect that increases units and average selling prices for its existing products and provides a foundation for the launch of an iTV-like device,” said Peter Misek, an analyst at Jefferies.
“We spent the last couple of weeks channel checking with developers and content providers on Apple’s possible plans regarding the cloud and their assault on the living room,” said Misek.
Misek believes Apple’s data center in North Carolina has gone live or will do so shortly. Some unconfirmed indications point to Apple possibly building another super data center next to the first: Apple purchased adjacent land at a high price; aerial footage shows Apple has cleared adjacent land; and at the announcement ceremony for the facility, a mock-up showed two side-by-side data centers.
Also, based on discussions with large multinational players, Misek additionally believes that plans for data center builds in other parts of the U.S. and Europe are accelerating meaningfully. Misek cannot trace the owner of these others back to Apple, but believes the specs to be similar. He can envision Apple creating the service first in the United States and then rolling it out internationally.
“We find it notable that the content companies, citing a lack of domain license, asked Cablevision to remove channels from its iPad app. We believe these same companies are negotiating some sort of deal with Apple. We would find it easy to believe that Steve Jobs’ final hurrah before turning the reins over would be to revolutionize video much in the same way Apple has transformed the mobile, computing, and music world. It is also notable that his authorized biography is due in 2012,” said Misek.
Read Full Story: International Business Times
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