Gabriel Madway reports for Reuters, “Apple Inc should affirm next week that its six-month-old iPad tablet computer is selling well despite a shaky consumer market, while the iPhone continues to fend off a strong challenge from rival Google Inc.”
MacDailyNews Take: Flagrant patent infringement is a magic but fleeting elixir.
Madway reports, “Analysts expect fourth-quarter earnings to showcase Apple’s powerful one-two punch of the iPhone and the iPad, although some still question whether, with a plethora of rival products set to hit store shelves, Wall Street can justify Apple’s stratospheric valuation.”
MacDailyNews Take: Apple’s promise is ridiculously brilliant. If anything, Apple’s valuation is too low.
Madway reports, “Apple trades at nearly 21 times forward earnings, a healthy premium over smartphone and PC rivals.”
MacDailyNews Take: Rivals who have been badly beaten, roundly humiliated, and hopelessly outclassed by Apple for years and whose very best efforts result in pale, disjointed, unsatisfying imitations of Apple’s products and services. The Street hasn’t seen anything yet.
Madway reports, “Apple, famous for its low-ball forecasts, stunned investors in July when it set a revenue outlook for September that was $1 billion higher than Wall Street’s target. The company has beat the consensus estimate in each of the past eight quarters by a minimum of 13 percent and has bested revenue estimates for the past seven quarters… Apple is expected to post earnings of $4.08 a share on revenue of $18.9 billion, according to Thomson Reuters I/B/E/S. According to StarMine’s SmartEstimate, which places more weight on recent forecasts by top-rated analysts, Apple should post EPS of $4.17 on revenue of $19.1 billion.”
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