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Analyst: iPhone demand, Mac sales strong
Friday, August 17, 2007 @ 11:40am

Apple is still likely selling iPhones in greater than expected quantities, even as signs point to increased Back-to-School Mac sales for the Cupertino-based company. RBC Capital analyst Mike Abramsky says the RBC's "technology adoption panel," which is made up of 3,665 technology-oriented users, found that 17 percent purchased a Mac laptop within the last 90 days for a 12 percent jump over the previous quarter. The analyst expects shipments of 2 million Macs in the September quarter, according to Barron's, for a rise of 27 percent year-over-year. RBC Capital is maintaining a $175 price target on Apple shares, and views the recent 20 percent decline in price as a buying opportunity.

Abramsky also predicts Apple's fiscal fourth quarter revenue will reach $6.2 billion -- well above popular Wall Street estimates of $5.93 billion -- with $0.76 earnings-per-share vs. Wall Street's $0.81 expected earnings-per-share. Checks with Apple and AT&T stores revealed "sustained iPhone sales momentum," according to Abramsky, who believes Apple will successfully ship 1.5 million units by the end of the fourth quarter to beat out its own estimate of 1 million. Total iPhone shipments will likely reach more than 14 million by the end of calendar year 2008, the analyst says, while European iPhone carriers will be revealed as early as next month and might begin shipping handsets to customers by October, according to Abramsky.

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  • Reader reaction
    Found 8 comments
    Check Your Calculations! 202654
    It appears you have your calculations on earnings backwards.

    "Abramsky also predicts Apple's fiscal fourth quarter revenue will reach $6.2 billion -- well above popular Wall Street estimates of $5.93 billion -- with $0.76 earnings-per-share vs. Wall Street's $0.81 expected earnings-per-share. "

    If Apple is set to "BEAT" Wall Street's estimates of $5.93 Billion, they should make more money per share than the estimate, not less. Wall Street's expectation of Apple is $.76, but Apple should make $.81.

    Remember the first rule of reporting numbers in Journalism..... check your figures three times.

    If it doesn't make sense, it usually isn't true and it hurts the credibility of your organization.
    Comment posted by: jhawk95
    It is Possible 202659
    They are speaking about revenue. It is possible to generate more revenue while having higher costs to generate that revenue which inturn would lead to smaller profits. This could be the situation or they might have made a mistake. I just wanted to point out that it is possible.
    Comment posted by: motionusxxus
    Apple computers 202660
    I have used Apple products since 1986. Whenever I discussed computers with colleagues back then, I would ask what machine they are buying. They would always say a PC. When I would inquire if they looked at a Mac they would laugh and say, "There is no software for Macs." Roll forward to 2007 and people are asking me which Mac to buy. The MacBook or the Pro. I always ask them to look at the iMac too, and they are willing if not delighted to go to the Apple store to check things out. What a difference. AAPL back to 140 soon.
    Comment posted by: fritzair
    Re: it is possible 202672
    Revenues and earnings per share are two different things. Revenues are just how much you take in (even in the horrid late 90s, Apple had Billion dollar revenues), while earnings per share is based on profit (and, again, in the horrid 90s, this would be < 0, with the million dollar losses they had).

    But who cares what this guy has to say. First, he's an analyst. Second, it starts off with "Apple is still likely..."
    Comment posted by: testudo
    I predict 202757
    And I predict apple is a horses hind end for releasing imacs with worse performing 3d graphics, and no options to build your own tower in the enthusiast price range.

    I'm glad for apple, and I like OS X...but they would be selling even more machines if they weren't deaf/blind/stupid to the requests of the users who want an enthusiast level expandable tower.

    Comment posted by: Jonathan-Tanya
    Yeah but... 202783
    @ Jonathan-Tanya. Is that graphics benchmark performance or actual real-world performance. For years Apple have been educating the average consumer to step away from their hardware-obsessed conditioning by producing relatively fixed-spec products and emphasizing software & stability. Now people are getting the message and finally buying why would they change this approach to curry favour with the technophilic minority who should probably do the same?

    Comment posted by: McDave
    Quick back-track... 202784
    The above doesn't apply if you're a gamer (the 7600 seems much better)

    Comment posted by: McDave
    Macs are now Apple 204689
    The dramatic 33% cut in iphone prices proves this analyst is and was smoking too much. Also, let's just think a little; when the gamer PSP was released, hype met reality but in this case every store in NYC was sold out for months. On the street, in the subway I'd see lucky owners of the PSP. I have yet to see one iPhone in the wild. I know they are out there. I knew Apple had only a moderate success when you could walk in the day after an buy an iPhone. When all these boards we're full of sold out, it's a hit, I could still buy an iPhone in Manhattan. Wall street reacted correctly this time by selling the shares down. 33% cut after 2 months has no precedence and only means Jobs was not going to give Wall Street what they clearly expected. The coy game Apple is playing with Blue tooth on the Touch iPod does not help either. Clearly they hoped we'd all be happy buying an iphone with white wires sticking out of it. I follow Apple news closely, not the hype. Apple's come back over the last 10 years has been amazing. It's notebooks are selling well even though a little old looking now. What will bring Apple back above 140 is the long awaited introduction of a sub-notebook with touch screen abilities. The Touch will not sell that well, though good enough. Till then I recommend shorting or swing trading. It's not good to get too sentimental when it comes to money. Sometimes you have to sell on the news good or bad. There's a lot of money to be made but not if you get sloppy and confuse loyalty with finance. Jobs cut the price by 33% with not one thought for you. Clever investors had already sold months ago. Short and you can buy back later. Time for y'all to get rich not just Jobs.
    Comment posted by: henjin
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