Consumers buying more Apple iPods than cell phones

Morgan Stanley raised in estimates for Apple in 2006 and 2007 by an incredible .28 and .50 cents respectively. This is in spite of Apple not being able to keep up with demand this holiday season. They conducting polls and found more people plan to buy iPods than cell phones, that more people are going to buy iTunes gift cards than non Apple MP3 players. Of all current MP3 player owners 40% plan to buy an iPod! People who own iPod Shuffles are more likely to trade up and get a full featured iPod. Apple also has room to increase the number of its retail stores, they will likely get a sales increase with the release of the new Intel Macs, and that Apple might get into the cell phone business. Based on this Morgan Stanley moved its price target up to an amazing $90!