Apple devices suffer from an inherent security flaw
Apple's iPad, iPhone and iPod devices suffer from an inherent security flaw that leaves is users personal information vulnerable to hackers. REUTERS

Apple iTunes, including iBook store and AppStore, is expected to grow at a rate of about 39 percent over the next 3 years and may contribute about $13 billion in revenues in fiscal 2013, according to an analyst at Global Equities Research.

Analyst Trip Chowdhry said his research indicates that more publishers are now supporting Apple's iBook format called ePub versus Amazon's Kindle format.

Our research with students indicates that they would rather have books on iPad vs. Kindle, Chowdhry wrote in a note to clients.

In terms of usability of iBook vs. Kindle application on iPad - on a scale of 10, iBook is probably 8 and kindle application on iPad is probably 5 - Kindle application lacks the finish and crispness of an iBook was the converged view we gathered, the analyst said.

Meanwhile, the application attach rate on iPad's has steadily been increasing. Just six months back, it averaged about 15 apps, today it is in access of 45.

In addition, the analyst adjusted his estimates on Apple to reflect a strong back to school sales of Apple computers, market share wins of Apple in the enterprise and acceleration in Apple's iBook and AppStore.

For the third quarter, Chowdhry now expects revenues of $24.80 Billion and earnings of $5.81 a share, reflecting a year-over-year increase of 58 percent and 65 percent respectively. Street expects Apple to earn $5.69 a share on revenue of $24.67 billion, according to analysts polled by Thomson Reuters

For fiscal 2011, the analyst now projects revenues of $104.08 Billion and earnings of $25.09 a share, reflecting an increase of 59.8 percent and 65.6 percent respectively from last year. Analysts expect earnings of $24.82 on revenue of $103.52 billion.

Apple Ipad ITunes Ipad