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When Will Apple Inc. (AAPL) Be a Buy?

iTV

According to market-research firm IHS Electronics & Media, the TV market is a $119 billion a year opportunity. While the details are not out, Topeka Capital Markets analyst Brian White believes that iTV will be 60 inches and priced for the high end of the market with a price of between $1500-$2500. While SAMSUNG ELECT LTD(F) (OTCMKTS:SSNLF) with 29% market share and LG with 15% market share are the current market leaders, Google Inc (NASDAQ:GOOG) with its Motorola division and Apple could take a significant chunk of that market.

No analysts have given potential market share estimates for iTV, but I believe Apple Inc. (NASDAQ:AAPL) will get 15% of that $119 billion dollar market. Apple has shown that it can take market share away from entrenched competition before with the iPhone for the mobile phone category. Apple has a strong track record of melding technology with fashion and using its brand name to successfully take the high end of nascent tech markets. If Apple captured 15% of the TV market and maintained a 30% profit margin, Apple should see an extra $18 billion in revenue and $5 billion in profits. More importantly, iTV would add to the Apple moat and give new customers more incentive to purchase higher margin Apple iPhones, iMacs, and iPods.

Conclusion

Although Apple Inc. (NASDAQ:AAPL)’s stock has gone through some troubles over the past year, the future for Apple is still bright. With the inevitable launch of Apple iWatch and iTV, I believe Apple shareholders will be rewarded for their patience.

The article When Will Apple Be a Buy? originally appeared on Fool.com and is written by Jason Bond.

Jason Bond has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Jason is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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