Carl Icahn Still Believes in Apple HDTV as AAPL's Market Cap Surpasses $750 Billion

[MacRumors]

Activist investor and billionaire Carl Icahn, during an interview with CNBC today, expressed confusion over The Wall Street Journal's recent report claiming that Apple scrapped its plans for a full television set more than a year ago. Icahn and his investment firm Icahn Enterprises remain confident that Apple will enter the television and automotive spaces, even as analyst Gene Munster admits he was wrong.

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Icahn issued an open letter to Apple CEO Tim Cook on Monday in which he applauded the company for recently increasing its share repurchase authorization by $50 billion, and encouraged further acceleration of the stock buyback program. Icahn also valued Apple shares at $240 each and said the company will sell 55" and 65" ultra HDTVs in 2016 and introduce an Apple-branded car by 2020.

"After many years of rumors as part of Apple's push into television and as we referenced previously, we expect in FY 2016 Apple will sell 55" and 65" ultra high definition television sets," said Icahn in his open letter. "We forecast revenues of $15 billion in FY 2016 and $37.5 billion in FY 2017 on 10 million and 25 million units respectively with average selling prices of $1,500."

The open letter also predicts that the iPhone will experience modest 2.3% revenue growth in the 2016 fiscal year, the iPad will rebound with a strong performance and revenue growth of 27.7% in FY 2016 and the Mac will continue to make gains over the next year. Icahn Enterprises predicts 10 million Apple Watch sales in the second half of 2015 and international expansion of Apple Pay.

Apple shares are currently trading at just over $130 as of publication time, giving the company a market capitalization of over $753 billion. In the past twenty-four hours, Apple surpassed the $750 billion market cap milestone for the first time as AAPL shares have risen following the open letter. Icahn himself has earned about $3.4 billion since announcing his position in the company in August 2013.

Article Link: Carl Icahn Still Believes in Apple HDTV as AAPL's Market Cap Surpasses $750 Billion

 

[JCrz]

This dude is crazy. But I love what he's done for my portfolio.

 

[gugy]

I doubt Apple will jump into the display business. Very low margins and huge competition. The current displays are great, the issue is more about the UI and content distribution. Apple doesn't need to create a display to improve these issues.

 

[Z400Racer37]

Lmdao


"Nope." - Apple

"No, but I really REALLY think so though." - Carl Icahn

"#" - Apple

 

[filmantopia]

He makes a good point. I have also noticed that Tim has taken time to discuss the poor state of TV in several high-profile interviews including Charlie Rose. I think there is definitely something bigger in the works tv-related, whatever it is.

Perhaps this sudden anti-Apple TV rumor was designed to throw us off of a trail.

 

[ProVideo]

I imagine Icahn's idea of a good time is sitting around and smelling his own flatulence.

 

[bradl]

At least MR has gone from the creepy scumbag picture to where Icahn could make a poor stand-in for the guy in the Dos Equis commercial.

BL.

 

[MarximusMG]

I barely made it through the entire 4 minute video listening to Icahn. The arrogance of this guy is beyond belief.

 

[ProVideo]

At least MR has gone from the creepy scumbag picture to where Icahn could make a poor stand-in for the guy in the Dos Equis commercial.

BL.

40 year old virgin Do Equis guy.

 

[BMcCoy]

Oh to be in Apple HQ - "new product development room" today....

They must be enjoying this little media frenzy...

(Regardless of whether they have shelved the TV, or are actually watching 'The Big Bang Theory' on it RIGHT NOW..!!) ;-)

 

[ricci]

A fanboy with money and investment experience to back the talk! But I'm sure the "other " crowd will still talk mindless doodoo!!

 

[Gildarts]

Maybe Jimmy can clear this one up?

Though I doubt we'd need him to do that. It's clear (and has been for a while) that Apple will be entering the TV-industry as a service/platform with Apple TV. With the model being to take some % off of tv-subscriptions.

It makes no sense for them to also start making TV-screens. That market is totally oversaturated and the Wall Street report gives plenty logical arguments as to why that doesn't make any sense whatsoever.

 

[69Mustang]

He makes a good point. I have also noticed that Tim has taken time to discuss the poor state of TV in several high-profile interviews including Charlie Rose. I think there is definitely something bigger in the works tv-related, whatever it is.

Perhaps this sudden anti-Apple TV rumor was designed to throw us off of a trail.

Wasn't Tim talking about TV as media content? I don't recall him talking about a physical panel. Those are two totally different things.

 

[jpgr15]

I imagine Icahn's idea of a good time is sitting around and smelling his own flatulence.

He probably drives a Prius.

 

[sshambles]

He probably drives a Prius.

He also made $3.4 billion in 2 years by investing in Apple.
http://www.cultofmac.com/323277/carl-icahn-made-3-4-billion-in-two-years-investing-in-apple/?utm_campaign=carl-icahn-made-3-4-billion-in-two-years-investing-in-apple&utm_medium=twitter&utm_source=twitter

Probably why he wants to keep things positive.

 

[subjonas]

40 year old virgin Do Equis guy.

ImageImage

I was totally going to say he looks like a cross between steve carrell and sean Connery

 

[b0nd18t]

I don't see Apple entering HDTV competition as a positive at all. Seems like a bad idea actually. For all the reasons WSJ and people here have already made.

 

[topmounter]

As annoying as he can be, Carl does make his own weather.

 

[glenthompson]

I doubt Apple will jump into the display business. Very low margins and huge competition. The current displays are great, the issue is more about the UI and content distribution. Apple doesn't need to create a display to improve these issues.

I agree completely. Just look at the displays Apple offers compared to Samsung or NEC. I see them coming out with a significantly better Apple TV and the possibility of integration with the TV makers, similar to what they are doing with CarPlay.

 

[Reds622]

Apple is eventually going to put a revolutionary projector system into its set top box..

There are is lots of room for improvement in this area, the margins I'm sure can be sweeter, and it removes a giant box from the living room in favor of a small like device. Eventually, I think, the screen will project upwards, so the need to project onto a walled service will be eliminated. How far away are we from this reality? I have no idea. I'm not an engineer.

 

[sidewinder3000]

To the editor: I think your headline has an error. It says "market share", but I'm guessing you meant "market cap"

 

[username:]

To me, this guy represents everything apple is not. Apple's message is always that they make great products. They don't just 'make a TV' to make money and dominate a market. This guy is too short sighted. Apple didn't get where it is today by thinking the way he thinks.

 

[iReality85]

I just don't see Apple getting into the TV manufacturing business. That would require owning and operating fabs, and LG and Samsung already rule the roost there. As far as branding goes, like what Sony does with Panasonic panels, I don't know if that's a good fit for Apple either. There is the Apple tv, which already serves as an interface and content platform.

 

[iamMacPerson]

Didn't he also invest in Blockbuster thinking things would turn around? He's also the one making PayPal and eBay split. IMHO, this guy is full of himself and an *******.

 

[Pakaku]

A lot of people here still believe in the PowerBook G5 and Retina MacBook Air.