Morgan Stanley on Friday raised estimates on Apple, noting that a survey by the firm found that iPods owners had a 19 percent PC-to-Mac conversion rate compared with a street expectation of 10 percent. Morgan Stanley also said that while all PC makers are vulnerable to Apple share gains, Hewlett-Packard “is most at risk.” The conversion rate of iPod users to the Mac platform from PC “implies two points of global PC market share gain for Apple in 2005,” to 5 percent from 3 percent, Morgan Stanley said. The firm raised the 2005 estimate to earnings of $1.31 per share on revenue of $16.942 billion, up from earnings of $1.07 per share on revenue of $13.914 billion.
