“The iPad Mini may be a hit product for the holiday season, but Credit Suisse analyst Kulbinder Garcha said he believes the iPhone 5 is what will really drive earnings in the all-important holiday quarter,” Ciaccia writes. “‘With strong iPhone 5 shipments we expect upside to our GM [gross margin] estimates of 40.2%,’ Garcha wrote in a note. He rated Apple shares outperform with a $750 price target, and expects Apple to earn $44.43 a share in fiscal 2012, and $56.44 in fiscal year 2013.’”
Ciaccia writes, “Even though the iPhone is the material driver of revenue for Apple, the iPad is becoming increasingly important, especially as it cannibalizes Mac sales to some extent. Garcha believes Apple will sell 16 million iPads in the fourth quarter, and as many as 21.2 million in the first quarter of fiscal 2013, with the iPad Mini accounting for as many as 10 million units.”
Read more in the full article here.