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. My estimate: $7.26 billion in revenue.

    18.5M iPods at $170 ASP; 1.77M Macs at $1364 ASP.

    There’s about $1B in revenue in the Other Music/Media category alone as iTS alone sold .5B songs in the Dec quarter. This is based on a comparison with the Mar-Jun and Jul-Sep quarters, which together registered .5B songs, with each quarter yielding about $450M in revenue. Then add in all the accessories being sold with the iPods at the Apple Store.

  2. Lvr

    I must say that if it had the ability to browse the movie section of iTMS and purchase movies directly from the unit, it would be a must have product for many.

    At some point if movie purchases dont work too well (although current numbers are good) it would be good if you could rent movies directly from it also.

    ——————-

    Agreed, I was really hoping for a direct interface with the iTunes store so you could purchase directly from the couch. I was also really hoping for a rental option and HD quality with multichannel surround…

    I mean, Microsoft is offering rentals and full HD with the Xbox service, I was really hoping Apple would simplify the process and do it better with tv.

  3. “I mean, Microsoft is offering rentals and full HD with the Xbox service, I was really hoping Apple would simplify the process and do it better with tv.”

    I wonder if the movie studios put more restraints on Apple than on Microsoft. I think a direct interface with the iTunes store is something that Apple had to have considered and it’s just a matter of when this will happen.

  4. Can’t Understand Normal Thinking (first letter of each word) C.U.N.T.

    Dude you have a serious thong bindage problem. Would you please lighten up on the drugs that are making your booby grow. In particular the one on top of your shoulders.

  5. Opie…you missed the limerick I posted for you yesterday so I wil resend it here for your enjoyment

    The once was a idiot named Opie,
    Who tended to act rather dopey
    To this ingnorant nut
    Buster said, “kiss my butt”
    To which he replied, “Okey Dokey”

    You were right, I do like to rhyme.

  6. What a f*cking troll!!! This f*&^&#xki;ng astrunaut dudn’t have a clue what he’s talking about! How the F*&# can he know the figure in advance!!?? Is he some F$#@*∆ genious??? MORON! 81-cents-a-share? You don’t know what a share is, F-A-R-M-E-R! Stick to plowing D«¶§∞HEAD! What…?

    Huh…? Really…? Oh…. S o r r y . . . I t h o u g h t y o u s a i d h e w a s a t r o . . . .</pre>

  7. @Opie,
    Is that what they teach you how to create a limerick back in Mayberry? Small wonder you are destined to rhyme art with hat not to mention having sex with you one-toothed sister.

    Now go diddle your friend Gomer, or whatever hicks like you who think saying we todD at is hilarious, do.

    Sad.

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