Bloomberg Apple shares are trading at half the price they should be, said activist investor Carl Icahn, who as one of the technology giant’s largest shareholders pushed Apple to return more of its cash hoard to shareholders. In a letter to Apple Chief Executive Tim Cook titled, “Sale: Apple Shares at Half Price,” Icahn said he believes the stock AAPL, +0.22% “should trade at $203 per share today,” which is a little more than double Wednesday’s closing price of $100.80. Icahn believes the current “massive undervaluation” of Apple shares will not last for long. Icahn said while he doesn’t intend to be critical of Cook, he believes Apple could help boost the share valuation by returning a lot more of its “excessive liquidity” of $133 billion net cash to shareholders. He urged Apple to make a tender offer, “which would meaningfully accelerate and increase the magnitude of share repurchases.” Icahn expects Apple’s sales and profit per share will increase 25% and 44%, respectively, in fiscal 2015, and earnings to increase by 30% in each of fiscal 2016 and 2017. With that in mind, he believes the current price-to-earnings valuation of the company’s shares in the market are both “irrational and transient in nature.” Icahn also took a swipe at Google’s GOOG, -2.03% Android operating system, which he believes will fall further behind Apple because of high fragmentation among its operating system versions, and “serious” privacy concerns. Icahn, who is Chairman of Icahn Enterprises, is one of Apple’s largest shareholders with about 53 million shares. Here are some other key points Icahn makes in his letter, including criticisms of Google : Apple shares are trading at 8 times his 2015 earnings-per-share forecast, which is nearly half the S&P 500 valuation of 15 times. Apple is poised to take market share from Google, which he sees as Apple’s “only real competitor” in the smartphone market. Comparing Apple’s iPhone 6/6 Plus to smartphones using Google’s Android operating system, like Samsung’s Galaxy S5 and Note 4, is like comparing a Mercedes to a Volkswagen Apple’s mobile ecosystem is becoming “increasingly dominant,” while the Android ecosystem is relatively “flawed and fragmented.” Apple Watch should have a “significant impact on Apple’s growth” over the next three years. Apple Watch sales could reach 20 million units in fiscal 2015, 45 million units in 2016 and 72.5 million units in 2017. Apple could introduce an “UltraHD” TV set in fiscal 2016. Apple expected to sell 12 million TV sets in fiscal 2016 and 25 million in 2017, at an average selling price of $1,500. IPad sales should reaccelerate in fiscal 2015, especially if a larger 12.9-inch screen and an improved version of its 7.9-inch iPad Mini are offered, as rumored.source