Apple's release of its iPhone this week could give local distributor Renaissance Corporation another boost following the local launch of iTunes in December.
The iPhone - which combines a mobile phone, touch-control widescreen music and video iPod, two-megapixel camera and internet connectivity including email, web browsing and maps
- will be available here next year.
First NZ Capital research analyst Chris Byrne said the iPhone looked impressive. "It just backs our view that Renaissance will do very well from the continued product rollout from Apple."
Speculation last year that Apple might end its relationship with Renaissance for a direct presence did not appear to concern investors yesterday, with shares closing up 5c at $1.55 - a 27 per cent rise since November 30.
In December Apple launched its iTunes and took direct control of its online store in New Zealand, but Renaissance said there was no change in its contractual agreement.
First NZ Capital has a share target price of $1.85 for the next 12 months or so, with the company's fortunes not solely tied to Apple.
Byrne estimated that slightly more than 50 per cent of earnings came from Apple. "There's some other reasonably good businesses in there but obviously the key growth factor for them is the Apple business."
Renaissance net profit rose 121 per cent to $5.1 million in the year ending December 2005, and is predicting 20 per cent growth this year.
The iPhone would start as a quite high-priced niche product and become more of a mass product, probably in two or three years, Byrne said.
"At the end of the day the iPod's success was partly just bridging the gap between gadgetry and quasi-fashion accessory ... whether the iPhone's going to do the same thing is quite a difficult thing to predict."
Apple boss Steve Jobs is planning to gain 1 per cent of the mobile phone market, with sales of 10 million iPhones by 2008.
Hardware sales from the online store are not expected to dent Renaissance much and the launch of iTunes would likely boost iPod sales, Byrne said.
"The overseas experiences have been at least 20 per cent increases in sales, some places have doubled but we're quite a late adopter of the iTune so trying to ... extrapolate any figures into New Zealand is quite difficult."
