Apple will have a ‘blowout’ December quarter, selling 9.5 million iPhones with strong Mac and iPod demand creating $12.4 billion in revenue for the Cupertino, Calif. company, an analyst told investors Wednesday.
“Despite strong macroeconomic headwinds and ever rising investor expectations, we anticipate Apple could post material upside to recently raised consensus estimates,” wrote Kaufman Brothers analyst Shaw Wu. The company appears to be firing on all cyclinders, its iPhone, iPod and Mac units viewed as fueling the optimism.
Apple will likely earn $12.4 billion for December, up from the previous $11.7 billion estimate, said Wu. For fiscal 2010, the company could rake in $44.7 billion, up from $41.7 billion, he said. Because of what Wu described as a “favorable product mix,” Apple’s gross margin will be slightly higher – 34.8 percent – than the previously expected 34.3 percent,according to the analyst.
A new record for iPhone sales will likely be set in the December quarter. Wu said 9.5 million of Apple’s iconic handsets could ship, higher than Wall Street’s consensus of 8.8 million and topping the company’s own record of 7.4 million. If correct, Apple may graze RIM’s 10.1 million shipment of BlackBerries. Citing “sources,” Wu said the Asia-Pacific area (particularly China and Korea) was showing continued strength. The iPhone is also showing a surprising uptake in Europe, bolstered by multiple carriers and more affordable prepaid plans.
Mac sales could hit 2.9 million, slightly ahead of the 2.85 consensus, Wu told investors. Although the refresh of models, including new iMacs and MacBooks, the analyst expressed concern his target may not be reached due to problems supplying screens. As for iPods, the Kaufman Brothers analyst noted an “aggressive” expectation of 22 million sold, higher than a 20 million consensus. Strong demand for the iPod touch and the new iPod nano were given as the impetus.
Wu’s target price for Apple shares: $253.
Earlier this week, Broadpoint AmTech analyst Brian Marshall said Apple “remains the best technology company on the planet.” Marshall expects Apple will sell 11.3 million iPhones, up from a previous projection of 10 million handsets.
[Via Barron’s]
