BofA: Apple had ‘good’ quarter, but we’re ‘very disappointed in iPod unit demand’

“Banc of America Securities said Apple Computer had a ‘good’ fiscal second quarter and estimates. Banc of America noted that Apple is gaining traction in systems and outgrowing the market by four times, ‘consistent with our long-term model.’ But the research firm noted that although Apple believes it gained market share in MP3 players February, Banc of America believes share gains slowed in March. ‘[W]e were very disappointed in the iPod unit demand, especially since the Shuffle had solid growth (from nothing) out of the block,’ the firm said,” Forbes reports.

Banc of America, which rates the company at ‘buy,’ added that ‘Apple’s weak unit sales mean we need to review our MP3 market estimate of 50 million units this year and 60 million in 2006.’ The firm raised the 2005 earnings estimate on Apple to $1.29 per share from $1.06, and raised the 2006 estimate to $1.40 from $1.25, but trimmed the 12-month price target to $47.50 from $48.50 on the compressed valuations of peers and ‘new concerns around the MP3 market,'” Forbes reports.

Full article here.


  1. My God what will happen if Apple actually ever has some bad news? Pretty much a lot of the analysts seem to be saying, yeah they did better than everyone expected but not as absolutely unbelievable as they could have done. Sure it was 120% of estimates but it COULD have been 130%.

    (percentages just for example)

    SHEESH. Well, another buying opportunity.

  2. How does 5 million iPods sold become disappointing?
    500% increase in sales bad? Idiots! ” width=”19″ height=”19″ alt=”angry” style=”border:0;” />

  3. “My God what will happen if Apple actually ever has some bad news?”

    It did. Remember that Apple had a bad quarter around the time of the Cube, and cratered from 70 or so down to an ultimate low of around $11 a share. It took them over 2 years to recover. (I know, I’ve been a shareholder for many years).

    Analysists are frequently the biggest know-nothings around. So much of what they say is pure hindsight after-the-fact. What’s sadder are the lemmings that follow anything these boobs say.

  4. Apple has 90% of the hard drive MP3 market and 43% of the flash memory MP3 market (which happened in one quarter) which means all the other makers share Apple’s scraps. There is the potential for sustained growth quarter to quarter for the next two years even further cementing Apple’s grip on the market. Let’s not forget that Apple had a better quarter after Christmas and is leading the industry.

    What more can these fools want? Apple to buy Microsoft? I don’t think so. These people have hidden agendas and like making these non-sensical comments to drive the price down so that they can alter their comments and make money for their clients quarters down the road.

  5. Oh no! Apple’s share gain “slowed”, meaning that Apple’s market share acceleration rate has decreased. But that means Apple still increased their velocity of growth meaning Apple still increased their market share of overall MP3 player unit sales. Does that idiot analyst think that MP3 players are an infinite market with an infinite pool of potential buyers?

    MDN Magic Word “take”, as in this analyst penned this after he stopped to take his profits.

  6. Like others have said…

    These analysts are worthless. They are bad at their jobs…. and they are unneeded…

    Making crap reviews like this only goes to show that they believe that their ideas are relevant.

  7. i was wondering the same thing. didnt they sell something like 5.1 million iPods the quarter AFTER xmas AND sold more than they did during that quarter? hmmm i don’t understand some of these companies. were they being sarcastic? I see 1.1million macs sold, way more than last year, and 5.1 million ipods, way more than even 1 quarter ago. <scratches head and is confuzzled>

  8. Aren’t these the same analysts who, a few days ago, said AAPL would disappoint and not reach 0.28/share? If I was as good at my job as they are, I’d have been fired a long time ago.

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