“Shaw Wu, an analyst with American Technology Research, this morning raised his revenue and EPS estimates for Apple, citing strength in the Mac business and sharp reductions in the pricing of key components, including NAND flash, DRAM and hard-disk drives,” Eric Savitz blogs for Barron’s.
“Wu says that the Mac business appears ‘recession proof.’ He now sees unit growth in the fiscal second quarter ending March up 42% year over year, up from his previous estimate of 38%. He says MacBook Air sales, ‘have picked up rapidly,'” Savitz reports.
“Wu now sees the company selling 2.15 million Macs in the March quarter, up from his old estimate of 2.1 million. He sees iPods at 10 million, up from 9.7 million, with iPhones at 1.5 million, down from 2.1 million… [as] the recent iPhone SDK announcement is ‘causing a pause’ ahead of the iPhone 2.0 software debut in June,” Savitz reports.
“Wu expects March quarter revenue of $7 billion, with EPS of $1.10; that’s up from $6.9 billion and $1.02. For the September 2008 fiscal year, he sees $31.3 billion and $5.15, up from $31 billion and $5. For ‘09, he sees $35.6 billion and $6.05, up from $35.2 billion and $5.95,” Savitz reports.
Full article here.
MacDailyNews Note: Apple’s March quarter (Q2 08) guidance of “revenue of about $6.8 billion” is 29.3% over Apple’s Q2 07 posted revenue of $5.26 billion.
2.15M Macs in the Spring quarter is truly amazing. A few years back they were lucky to get 1M.
Things have really changed for the Mac. Whilst the iPod halo effect is important, I think the Intel switch has made the greatest difference. Apple are no longer held back waiting for new processors.
Works for me.
I doubt people will be waiting to purchase an iPhone because the iPhone 2.0 software is not out yet. Apple has already stated that this would be a free upgrade for all iPhone users. The only thing some people could be waiting on is a 3G iPhone, which is nothing more than a rumor at this time, and may not happen in June unless Apple is convinced that 3G chips are significantly more efficient than they have been for the past year or so.
Now hopefully those stupid investors that dumped AAPL a few weeks ago will feel stupid…
WAsn’t dumping, was profit taking
@bizlaw,
Except that a lot of people think that the software update coming in June is actually a new hardware model. Obviously, they are mistaken, but the likely reason for this confusion is that a lot of articles, unlike the one above, refer to it as “iPhone 2.0”.
Yes, Mr. Matalino,
Dumping to put it mildly, a lynch mob was out for Apple. I was just laughing thinking about the poor press inches re the MacBook Air and is that sucker selling.
Why would the iPhone firmware 2.0 due later this year cause a pause in iPhone sales? It’s going to be a free upgrade to existing users.
Maybe I should become a analyst and get paid stupid sums of money to spew forth the patently obviously peppered with the plain wrong? Can’t be that hard!
@Stuart
Everyone and their brother knows that a 3G iPhone is a) coming in 2008, b) necessary before a plunge into Asia, and c) necessary for Apple to get to 10 Million in 2008. The stars align in May, June, July, August. Somewhere in there out comes the new 3G, 16 Gig, probably thinner and even more beautiful iPhone.
Maybe I should become an analyst…
Maybe not.
you’d never make it as an analyst
you posted something credible and well thought out
So why did the market take Apple down almost 40% from its former justified high? To punish us all.