Citing the strength of iPad and iPhone demand, one Wall Street analyst Friday increased his estimate of Apple’s second quarter earnings. The Cupertino, Calif. company will likely announce $24.42 billion in quarterly earnings, up from a previously projected $24.42 billion, according to J.P. Morgan.
Analyst Mark Moskowitz told investors he foresees Apple selling 18.4 million iPhones, up from 16.6 million. He however slightly trimmed his expectations for iPad 2 sales to 5.4 million units, down from 6 million. Moskowitz concerns about the iPad 2 were “timing related and not structural,” citing a “temporary stall-out of shipments.” The analyst recently announced Apple held an “insurmountable lead” in the tablet market and the iPad 2 could burst the bubble of rivals trying to catch up.
Earlier this week, Moskowitz told investors a CDMA iPhone could be a $9 billion opportunity for Apple, helping fuel iPhone growth in global areas supporting the CDMA technology, such as China and India.
The analyst expressed concern a scheduled rebalancing of Apple’s stock on NASDAQ could mean the sell-off of around 8 million shares representing half of Apple’s daily trading volume.
For the Mac product line, the analyst sees 32 percent year-over-year growth with 3.89 million units sold, a slight uptick from the his previously projected 3.85 million Macs. He referred to the MacBook Air as still offering “breakthrough performance” first seen in the first quarter of fiscal 2011.
Apple will announce its quarterly earnings Wednesday, April 20.