iCloud seen as most important Apple service since iTunes
A new report calls Apple"s iCloud the company"s most important service since the launch of the iTunes music store in 2003, and could lead the way to new unthought of devices.A report released on Monday by research firm Barclays Capital notes that Apple"s iCloud service could be as big for the company as its game-changing iTunes media store, possibly paving the way for new innovative devices.
Analyst Ben Reitzes sees iCloud as the "new hub" for users" media by storing data in the cloud rather than locally, allowing for wireless distribution to a variety of devices. He believes that taking computer storage out of the equation would allow Apple an opportunity to "foray not only into TVs, but devices we haven"t thought of yet."
The service fully monetizes users" iTunes investments across all Apple devices, with the upcoming iTunes Match providing copies of music purchases not made through the company"s online media store.
Reitzes believes that Apple chief Tim Cook understands how important iCloud is to the future of the company and concurs with the CEO, saying that the data service is "profound."
"A truly reliable cloud service that frees customers from wires should foster more customer loyalty and convenience," Reitzes said.
The analyst gives AAPL an overweight stock rating with a target price of $555, and believes that the company"s market cap can see further gains based on Mac and iPhone sales.
Recently the firm"s Global Wireless Equipment team raised its 2011-2014 smartphone forecast to 65% year over year growth in 2011 to 467 million units, up from 49% or 420 million. For 2012, analysts see a 43% growth to 668 million smartphones, up from the previous forecast of 35% representing 567 million units. The new forecasts are based on Apple"s strong iPhone 4S launch and prospective sales numbers as well as an eventual iPhone 5 release.