American Technology Research analyst Shaw Wu expects Apple will sell 7.1 million iPods in the current quarter, according to a report by Macworld UK’s Jonny Evans.
This current quarter is Apple’s fiscal fourth quarter. Apple’s fiscal year 2005 runs from September 26, 2004 to September 24, 2005. Apple sold 6.155 million iPod units (all models) in their fiscal third quarter (ended June 25, 2005), shocking many on Wall Street — no analyst estimates came close to Apple’s iPod unit sales, with the highest being around 5.5 million — and evaporating the fears of many of a rumored (obviously baseless) iPod slowdown. Wu’s 7.1 million iPod units estimate is a good 15-percent over the previous quarter.
“The analyst also describes Samsung’s ‘readiness’ to reduce flash memory prices by up to 50 per cent. This revelation follows recent news that Apple has acquired 40 per cent of Samsung’s flash memory output,” Evans reports. “With this in mind he states he has, ‘higher conviction that flash will replace microdrives at 4GB capacities.’ Previously he has seen 4GB flash-based iPods as unfeasible, because of the cost of such memory.” ‘Our sources tell us that Samsung was willing to drop its prices aggressively to lock in a marquee customer and win back some business from Toshiba, Apple’s other flash supplier. Interestingly, we believe Apple will also likely source from Hynix, adding a third flash supplier and thus further driving down pricing to protect its gross margin,’ he added.”
Full article here.
Wu really needs to take a closer look at his Apple stock price target of $42. He seems a bit low on that one. As for the iPod units prediction, what do you think? Is Wu too low, too high, or just about right?
Apple sold 6.155 million iPod units in their fiscal 2005 third quarter ended June 25, 2005, 5.311 million iPod units during its fiscal 2005 second quarter ended March 26, 2005 and 4.58 million iPod units during its fiscal 2005 first quarter ended December 25, 2004. In its fiscal 2004 fourth quarter ended September 25, 2004, Apple sold 2.016 million iPod units.
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