Piper Jaffray said earlier today that it thinks the iTunes Music Store could emerge as a driver for Apple’s shares in fiscal 2005 and 2006. “We believe that the Street is underestimating the impact of iTunes on two levels: hype factor and financials,” the firm told clients. “Based on Apple itself downplaying the potential growth and profitability of the iTunes Music Store, we believe expectations related to this segment are minimal… As the iPod installed base grows and the overall demand for digitally distributed content increases, we expect the Street to begin to view iTunes as more than just the cog in a wheel that drives hardware sales.”
