Strong Mac and iPod holiday sales could add to Apple’s earnings upside

“Merrill Lynch analyst Richard Farmer sees Apple posting higher results than Wall Street expects. He recently raised his outlook to earnings of 81 cents per share on sales of $6.5 billion, above consensus estimates. The company, he wrote in a note to clients, saw strong iPod sales during the holidays. ‘We believe Mac demand has also been solid in December,’ he added, noting that more than 60 percent of iPod sales for the quarter took place in December,” The Associated Press reports.

AP reports, “Citing data from the NPD Group, a market research company, he said December is the best selling month for iPods, typically making up about 36 percent of the year’s business. The quarter accounts for about 55 percent of the year’s total sales, he added.”

AP reports, “Shaw Wu of American Technology Research sees Apple posting results in line to slightly above consensus estimates, which have moved up “considerably” over the past month.”

“Analysts, on average, look for earnings of 78 cents per share on sales of $6.42 billion, according to a Thomson Financial poll,” AP reports. “Apple said in October it expects revenue of $6 billion to $6.2 billion and earnings of 70 cents to 73 cents per share.”

Full article here.

Related article:
Reminder: Apple Q1 07 financial results coming Wednesday – January 15, 2007

35 Comments

  1. With a cost of $299, Apple TV could be a “surprise hit,” Wu said.
    ———————————

    Hmm. I’m very skeptical about Apple Tv being a surprise hit… $299 for the device plus $179 for the Apple 802.11n router is $478, a hefty price to pay for it’s limited functionality of getting “near dvd quality” iTunes media without surround sound to the living room… Especially when a $19 iPod AV cable will essentially do the same trick, albeit a less elegant method and without on screen menus, but still, the difference between $478 and $19 is significant when you consider that both methods will accomplish the same end result.

  2. Just to keep off topic, I predict the new iPod will (more or less) keep its present size and have a 4-inch multi-touch screen – not 3.5 inch like the iPhone.

    The top model will have a 100 GB hard disk or a bit more, and cost just under $400.

    .. and I’m going to buy myself one as soon as possible.

  3. Apple Lvr, get over it. The beauty of the AppleTV is the hard drive, which allows content to be constantly synced with your computer. This allows “g” networks to suffice, until you need the extra horsepower. Sure you could get a cable for you iPod, but then you won’t have the on-screeen menus, and you have to get your iPod synced and over to your TV everytime you want to watch something. I usually leave my iPod in the car. It’ll be great to sit down on the couch and browse the AppleTV to see what I want to watch. Video Podcasts, Movies, TV, listen to music, podcasts, look at phots, etc. Worth $299, especially if/when 720 movies come.

  4. Schmuss, As I said in my above post:

    “….. albeit a less elegant method and without on screen menus, but still, the difference between $478 and $19 is significant when you consider that both methods WILL ACCOMPLISH THE SAME END RESULT.”

    Are the Front Row like graphics of tv enough to justify all the extra dough when a $19 cable does the trick?? For the Apple faithful? Probably. For the masses to make it a surprise hit? I’m doubtful.

  5. to Lvr: For most content, I generally agree with your point… however, this is a forward looking product. The iPod *does not* have progressive scan, component out, HDMI, etc. There’s a lot more in content and connectivity coming that will make the AppleTV flourish. HDMI is required for HDCP handshaking, again, for HD content in the near future. Sure, iTunes content isn’t the same, *yet*. Also, everyone is hammering on the requirement of an “n” router for wireless… just connect AppleTV to your network via ethernet. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” /> Structured wiring is more common in newer houses, and retrofitting a cat-5 to one location from your computer/router isn’t hard either.

  6. Apple Lvr: Hmm. I’m very skeptical about Apple Tv being a surprise hit… $299 for the device plus $179 for the Apple 802.11n router is $478, a hefty price to pay for it’s limited functionality of getting “near dvd quality” iTunes media without surround sound to the living room…

    Eh? Since when you need Apple 802.11n router to use it with (Apple)tv? (Apple)tv is already 802.11n capable.

  7. Audioboy, If and when iTunes Store content becomes HD, then tv may make more sense, but currently the HDMI and optical connections are useless with the quality of content available now. I’m just talking about Shaw Wu’s comment about being a surprise hit.. I don’t see it happening “now” because currently there are so many limitations..

    @I, Yes, tv is 802.11n capable, but to take advantage of 802.11n you need an 802.11n router.. tv is also backwards compatible with “b” and “g,” but you won’t get “n” speeds without an “n” router.. Also, current iTunes video resolution may stream with “g,” but if and when iTunes delivers 720p, you will want “n.”

    I’m just saying for the time being, it’s a heck of a lot cheaper to go with the $19 AV cable. Wait till iTunes content catches up and you will probably get a better revision 2.0 tv at a lower price.

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