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Apple's Path to $225

October 16, 2007

By Tobin Smith, Editor, ChangeWave Investing

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Tobin Smith

Tobin Smith

Tobin Smith is the founder and editor of ChangeWave Investing. He also serves as executive editor of ChangeWave MicroCap Investor, and contributes his weekly market outlook and editorial rants to ChangeWave's WaveWire e-letter, which is read by more than 250,000 investors each week.

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ChangeWave was the first firm to have a $150 target for the stock and then a $200 target. Now, we're moving our target $225—no doubt Jim Cramer will make his target $226 now.

Like I said, I get a lot of guff about my Apple predictions from the nonbelievers, but that's OK. It comes with the territory.

Many of our subscribers made a fortune because we were right about Apple. Yes, I'm patting myself on the back, but it's deserved.

Now it's time for the $64-million question: Has this fortune-making stock run over?

And I will tell you with every ounce of conviction I possess—NO!

Why Apple's Headed Higher

Between Oct. 22 and Oct. 27, Apple is going to announce the greatest group of new products in its rich history.

Mac OS X Leopard

I am told the source code for the new Mac operating system, the Leopard, is getting pressed this week, which means it's ready for prime time.

The beauty of this operating system is how easily you can switch your home computer, laptop and office PC to a Mac and still use all of the Windows software you had before. The only difference you'll notice is that it won't crash.

Macs

Our ChangeWave Alliance research shows that demand for Mac desktops and laptops is off the chart—I know I can't wait to get rid of my Windows laptop—and we should see Apple reporting a huge quarter in January.

Our research shows Apple should sell 2.5 million Macs this quarter. That's up 40% year-over-year, which is amazing.

And it looks like the Mac Mini is dead—long live the "Mac Nano," which will fly off the shelves. And remember that Apple makes a lot more money selling Macs than it does selling iPods.

iPods

Our iPod replacement cycle analysis shows there is still plenty of room for growth. Apple has captured about 20% of the market already, which leaves 80%. And about half of iPod owners are upgrading. The new iPod Touch is practically an iPhone without the phone.

iPhones

Apple is likely receiving 10% to 15% of monthly customer contracts from its international carriers with the iPhone, which is income you don't see.

And our Alliance surveys show iPhone sales trending as expected in the United States and around the world.

Plus, be on the lookout for the 3G iPhone and the iPhone Nano.

The Apple Wave

Wrap it all up with a bow and we've got Apple headed to $225.

At ChangeWave Investing, we're invested in the entire food chain—from the chips to the touchscreen technology, and even to the service that allows you to activate your iPhone over the Internet. All of these companies are ways to build your fortune from Apple. (Get in on these plays by clicking here.)

Do not let the naysayers—who don't have access to the intelligence gathering miracle that is the 11,000-member strong ChangeWave Alliance—talk you out of Apple.

And don't let this run fool you, because Apple's earning power won't even peak until 2010 when iPhone sales peak.

I bet Apple will have its own wireless network in the United States by then. And Apple will receive a minimum 10% of the monthly phone bills of iPhone owners.

It's simply mind boggling.

The disbelievers are, in the words of President Bush, the "misunderstanderers."

Don't fall prey to their ignorance. Use the ChangeWave Alliance to your advantage.

It's Apple all the way to $225, baby!

Apple is headed higher and there is still time to make a fortune from the Apple Wave. At ChangeWave Investing, we're invested in the entire food chain of companies that benefit from Apple's growth. Click here to get your 90-day, risk-free trial subscription and start profiting today!

ChangeWave Investing was created to help investors like you build your wealth by capitalizing on the greatest growth stock opportunities that drive our economy. These are the humongous changes that will help build your fortune. For less than a dollar a day, we'll help you capture profits like 120%, 161% and 350%.