BMO Raises Apple Estimates on Enterprise iPad Adoption

Enterprise AppleKeith Bachman, Bank of Montreal Capital Analyst, issued a note to investors today raising his price targets for AAPL shares to $675 from $590. He also increased his estimated iPhone and iPad sales for both the current quarter and the rest of 2012, from 10 million to 11 million and from 53.1 million to 54.1 million over the course of the year.

What’s the reason for the enthusiastic estimates? iPad sales. Specifically, iPad sales in corporations, which Bachman believes will continue to catch on this year.

Here’s what Bachman had to say:

“As part of our views on the tablet market, we think corporate adoption will help, regardless of the ultimate purchaser of the device. More specifically, we think both end consumers will buy tablets for work purposes, and corporations will increasingly buy tablets, and thereby stretch PC replacement cycles.”

There’s no denying that Apple’s iPad has been making inroads in the corporate world. In  July of 2011, Apple CFO Peter Oppenheimer announced that 86 percent of Fortune 500 companies were testing or using the iPad within their enterprises, and 47 percent of Global 500 companies were doing the same.

In January, Forrester Research estimated that Apple would sell a whopping $10 billion worth of iPads to commercial customers, marking a shift from spending on PC products.

Bachman agreed that iPads are transforming into fully-fledged computing devices, noting that the iPad’s share in the notebook market has increased from 7 percent in 2010 to 19 percent in 2011, and from 4 percent to 11 percent in the total PC market. He estimates that Apple’s shares in both markets will increase to 33 percent and 20 percent, respectively, by 2013.

Bachman also raised iPhone shipment estimates, from 29 million to 30 million during the current quarter and from 120 million to 124 million during 2012.

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