Apple Computer will split its stock 2-for-1 after the shares more than tripled in the past year on surging demand for the company's iPod music player.
Apple Computer will split its stock 2-for-1 after the shares more than tripled in the past year on surging demand for the company’s iPod music player.
Apple last split its shares in 2000 at the height of the Internet bubble. Holders as of next Friday will get an extra share for each one owned, and split-adjusted trading will start Feb. 28, Apple said in a statement yesterday.
Chief Executive Steve Jobs has used the iPod to broaden Apple’s revenue beyond its Macintosh computers. The players now make up 35 percent of total sales after shipments soared more than sevenfold last quarter.
Most Read Stories
- Rachel Dolezal struggling after racial-identity scandal in Spokane
- Aerospace firm Electroimpact agrees to pay $485K after AG finds ‘shocking’ discrimination against Muslims
- No repeal for 'Obamacare' — a humiliating defeat for Trump VIEW
- Here's where the Seahawks stand in free agency
- Sen. Patty Murray will oppose Neil Gorsuch for Supreme Court
The iPod also spurred orders of other Apple products and helped make the stock the No. 2 performer in the Standard & Poor’s 500 Index last year.
“The average person is getting experience with Apple products, then they call their broker and say, ‘The iPod has changed my life’ and they buy the stock,” said Eugene Munster, a Piper Jaffray analyst in Minneapolis who rates the shares “outperform” and said he doesn’t own them.
Apple shares rose $2.37, or 3 percent, to $81.21 yesterday. Munster expects the stock to surge to $100 by November, not counting a split.
Sixteen analysts recommend investors buy Apple shares, seven suggest holding the stock and none say to sell.
iPod customers include President Bush and Michael Powell, chairman of the Federal Communications Commission.
Apple’s fivefold increase over the past two years marks a reversal from the 71 percent decline in 2000 and 35 percent drop in 2002, when the stock closed the year at $14.33.
Apple’s market capitalization has risen to $33 billion today from $5.14 billion at the end of 2002.
“Everybody hated it at $14, now they love it at $80,” said John Buckingham, president of Al Frank Asset Management in Laguna Beach, Calif., which manages $625 million.
Al Frank held Apple shares between 1997 and 2000, when the stock surged following the introduction of the iMac. “It’s déjà vu all over again.”
The company benefited from demand during the holiday shopping season.
Sales of the iPod, Apple’s fastest-growing product, surged to $1.21 billion in the most recent quarter.
That success is spreading. Piper Jaffray surveyed 200 iPod users in November that found 6 percent said they had switched to Apple’s Macintosh personal computer from PCs for the first time since buying the iPod.
Seven percent of those surveyed planned to switch to Mac from PC in the next year, Munster said this month. Apple’s 16 percent growth last year PC shipments in the United States was faster than the market’s 11 percent.
Apple shipped 337,000 iMacs last quarter. That made the latest iteration of the consumer computer, released in September, the most popular Mac. Total Mac shipments rose to 1.05 million, the highest number of quarterly shipments in more than four years.
Jobs last month introduced his lowest-priced Macs and iPods to attract even more consumers and signed on new retailers such as Target to broaden distribution.
The stock reached a 52-week high of $81.99 on Wednesday, the day Sirius Satellite Radio said it had held talks with Jobs about adding satellite-radio service to iPods.
On Thursday, Sirius’ competitor, XM Satellite Radio, said it had a similar talk with Jobs.
Executives at both Sirius and XM said Apple doesn’t see a need to add the radio service at this time.
Information on talks with satellite radio companies provided by The Associated Press.