“In a research note released to clients on Tuesday, UBS Investment Research offered a preview of Apple’s second quarter earnings while analyzing some potential innovations it expects from the company over the next two years,” Kasper Jade and Katie Marsal report for AppleInsider. “For the recently ended fiscal quarter, UBS estimates that Apple will earn 23 cents per share on revenue growth of 67% year-over-year to $3.2B. However, the firm notes that these estimates are conservative, suggesting Apple will likely post slightly higher figures when it reports its 2Q05 earnings on April 13th.”
“According to a series of recently performed checks, UBS said Apple’s future product developments and innovations could possibly include: more innovation around photo-capable iPods; multimedia iPods; a digital media hub; and even an iTunes-like movie/video download service,” Jade and Marsal report.
“Touching on the recent controversy surrounding the Apple-Motorola iTunes phone (or lack thereof), UBS said it believes the cell phone market represents an exciting opportunity for Apple in terms of driving additional songs through iTunes; adding that any imposed licensing fees for iTunes would be lucrative for Apple. However, the firm believes the company must continue to innovate with iPod capabilities in order to fend against an eventual boom of hard-drive equipped cell phones that will be capable of playing music files and possibly making the iPod seem obsolete,” Jade and Marsal report.
“‘We believe that it is more likely Apple is trying to figure out how to make a wireless iPod (perhaps using WiFi) to download music on the fly,’ the firm said. ‘This type of wireless iPod device is likely still on the drafting table, but could become a reality by the end of next year in our view.’ While offering no guarantees, UBS said Apple is in a strong position to capitalize on current trends. ‘The dynamics in consumer entertainment seem to still be moving toward Apple and the company has an opportunity to expand its competitive advantage with its software,’ the firm said,” Jade and Marsal report.
Full article with many more details here.