Analyst: Here’s Why Apple is Looking Up
Low manufacturing yields for Apple’s redesigned iMac lineup and “minor cannibalization” from the iPad and iPad mini will also likely result in slower sales for the computers, according to the analyst. Wu expects Mac sales for the December quarter to come to 5 million, down from a previous prediction of 5.1 million and lower than the consensus of between 5.2 million and 5.3 million.
What Would be the Overall Impact of Wu’s Observations?
Wu raised his quarterly revenue estimate for Apple to $54.6 billion and earnings per share estimate to $13.70 from $53.7 billion and $13.15, respectively. He also increased his gross margin forecast for Apple’s current quarter to 38.5 percent from a previous prediction of 38 percent. For fiscal 2013, the analyst predicts that Apple will earn $193.4 billion in revenue and $49.50 in earnings per share, higher than consensus figures of $193 billion and $49.28, respectively. Apple shareholders were not giving much credence to the positive note on Tuesday morning, with shares down a little less than 2 percent at $574.50 at midday in New York.
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