Gene Munster an analyst with Piper Jaffray projects that Apple's share price will jump to $205 per share in 2008

One thing we learned with the iPod is that when a device is game-changing, the demand will come...However, it is difficult to predict the inflection point. For example, in December 2004, Street expectations for iPod ran wild with investors anticipating 8 million iPods, but Apple only sold 4.6 million. It was feared at the time that the iPod would never go mainstream.

Conversations with investors over the past month suggest awareness of potential for iPhone units is high, but awareness of potential resulting impact to earnings is low...if Apple can sell 45 million units in CY09, the earnings power and historical multiple ranges suggest our price target is reasonable.