Analyst: Q3 iPad 2 Sales to Hit 7.9M

| Apple Stock Watch

AAPL stock chartApple’s third fiscal quarter iPad 2 sales will likely hit the 7.9 million unit mark, according to UBS analyst Maynard Um. He also expects Apple to report 18.3 million iPhones sold, and raised his quarterly revenue expectations from US$24.8 billion up to $24.9 billion.

Along with high demand for the iPhone and iPad, Mr. Um is also seeing strong interest in the company’s Mac lineup. “We see gross margin upside from multiple sources: 1) favorable component pricing, 2)potential warranty accrual reversal, 3) lower back-to-school promo ($100 gift card vs.prior $229 iPod touch), and 4) potential reversal benefit from Nokia settlement.”

Mr. Um also raised his EPS estimates for Apple’s third quarter from $5.73 up to $5.88. He added “For fiscal year 2011, our new estimates are $104.8 bilion/$25.26 (prior $104.7 billion/$25.11).”

Apple will be hosting its third quarter earnings conference call after the market closes on July 19.

Mr. Um is maintaining his “Buy” rating and $510 target price for Apple’s stock. Apple is currently trading at $359.57, up 5.82 (1.65%).

No Comments

Log-in to comment