Apple iPhone Gets a New Core

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David Evanson and Mike Walkley, Fall, 2011

Following the announcement of the AAPL iPhone 4s, Canaccord technology analyst Mike Walkley reiterated his BUY rating and $545 price target on AAPL. Mr. Walkley said:

“While iPhone 4S may be seen as a mild disappointment by investors as it retains the form factor of iPhone 4, we believe the model features several important hardware upgradesā€¦Further, we believe compelling new capabilities in iOS 5 and iCloud will generate strong sales of iPhone 4S and increased iOS ecosystem stickiness to generate future recurring device sales.”

Regarding the rest of AAPL’s product announcements yesterday, he noted, “With these enhancements to Apple’s high-end portfolio, we believe the company will maintain dominant value share [percent of industry operating income] of the tablet and smartphone markets.”

Mr. Walkley raised his 2011 earnings per share estimate to $27.77 from $27.29, and his 2012 earnings per share estimate to $32.24 from $32.13. He also raised his 2011 and 2012 revenue estimates for AAPL.