Fueled by expected increase in iPad demand and expanded distribution of the iPhone, one analyst Thursday raised to $415 per share his target price for Apple stock, up from $365. UBS Securities’ Maynard Um became the latest analyst to up Apple’s target share price ahead of next week’s report for the first quarter of fiscal year 2011.
Um foresees Apple able to weather lower prices on its popular MacBook Air for $24.57 billion in quarterly revenue, higher than the $23 billion Wall Street consensus. The Cupertino, Calif. company will also be helped by the iPad and iPhone.
The analyst sees “robust demand” for the tablet during the previous financial quarter, raising his sales estimate to 6 million units. The last quarter was likely the first three-month period where demand did not outstrip supply, he told investors Thursday. Although iPad margins were 25 percent, increased manufacturing coupled with lower parts pricing helped Apple, according to the Um.
Additionally, Um predicts Apple will have sold 15.6 million iPhone, up from his previous expectation of 14.1 million units. The jump was prompted by the handset becoming available in more countries – 89 versus 64 a year earlier. He also believes 69.4 million iPhones will sell in the 2011 calendar year, up from 67.3 million previously predicted. The increase is due to the addition of Verizon as a selling partner.
As for the venerable iPod, sales likely fell 4.6 percent compared to a year earlier to 20 million units, Um said.
Um’s report is just the latest indication Apple’s core revenue is moving to its latest items — the iPhone and iPad, and away from its legacy Mac and iPod products.