Despite the fear of recession, tech firms like Apple are thriving. In fact, if you want to invest its Apple’s stocks maybe more foolproof than gold itself (be careful of the gold bubble). Apple has been playing it safe by providing conservative estimates of its performance but as the fourth quarter draws to an end, analysts across the board are racing to raise their estimates.
The following are some of the examples of major market research analysts and their revisions of the estimates
- Shaw Fu from Sterne Agee: Sees “remarkable” strength in iPhone 4 sales despite expected release of iPhone 5 in October. Ups iPhone estimate to 18.5 million (from 15.7 million), iPads to 12 million (from 10.4 million) and gross margin to 41% (from 39%). Staying pat on Macs at 4.1 million.
- Keith Backman from BMO: Raises iPhones to 20.4 million (from 19.5 million), Macs to 4.31 (from 4.27 million) and iPads to 11.0 million (from 10.5), adding that he “sees upside tension to 11.5 million units,” whatever that means.
- Andy Hargreaves from Pacific Crest : Sees “significant upside” to the numbers in his spreadsheet but doesn’t seem quite ready to change them. Could easily imagine iPhone sales going to 24.05 million (from the 18.7 million in his model) and iPad sales going to 16.5 million (from 11.1 million).
- Peter Misek from Jeffries: iPhone sales are “surprisingly strong” he says, but back-to-school demand for Macs was “weaker than expected.” Ups iPhone estimate to 18.9 (from 18.4), lowers Mac to 4.4 million (from 4.9 million).
Overall, while Apple can boast about the increase in sales of all its major product lines, only the iPhone and iPad are doing extremely well. The Macs are increasingly being pushed to the sidelines. The majority of the company’s profits are now heavily focused on the iPhone and iPad but there is always the danger that if Apple because too dependent on these devices, it may stumble in the future. Even as it readies to launch the iPhone 5, its rivals are planning to release very more powerful and sophisticated phones. Fortunately, Apple has sensibly expanded its product range, especially in terms of services.