Meanwhile, the tablets have come a long way in a short period of time. Jackson noted that two years ago, the market didn’t even exist, but now iPads account for 20 percent of Apple’s business, which is a trend he fully expects to continue. In fact, many people in and around the industry feel it’s not unreasonable to think that 500 million tablets could be sold by 2015.
While Jackson has very high expectations for Apple’s long-term outlook, he doesn’t think its stock can sustain its short-term success, saying it has gotten “ahead of itself.” He went on to predict that the shares will retreat to $500 before they reach $700, but listed Apple TV and mobile payments as reasons he thinks Apple will acheieve its ultimate success, referring to those two areas as “underestimated.”
“The payments market is huge and ripe for a company like Apple,” Jackson said.
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Disclosures:
Eric Jackson is a hedge fund manager and founder of Ironfire Capital, which owns 10,000 shares of Apple. Jackson’s own stock holdings were not immediately available.
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