Submitted by: kirkland on Tuesday February 15th, 2005 at 02:43 PM EST

Wall Street analyst Steven Milunovich believes that Apple and Sony could be working on a number of products together ranging from computers to music devices.

"Why did Steve Jobs say that Apple and Sony could possibly work together on computers and music? We think Apple could introduce products based on the IBM/Sony/Toshiba Cell processor," Milunovich stated.

"We speculate that an Apple/Sony partnership could take the following forms: (1) an iTunes-like iMovies Store online using the H.264 codec and streaming Sony and Pixar (Nasdaq: PIXR) Latest News about Pixar content, (2) a high-performance Apple workstation using Cell for video editing, and (3) a network-centric TV with computing Save up to $189 on the HP ProLiant ML110 server. for handling the next-generation of entertainment feeds."

He cautions however that his thoughts were not based on knowledge of Apple and Sony's plans, if any. He also reiterated a "buy" rating on Apple stock with a new price objective of $102 per share.