Apple: European iPhone Sales Solid, RBC Says
Posted by Eric Savitz
Sales of the Apple (AAPL) iPhone in Europe are better than some investors thought, according to a research note today by RBC Capital’s Mike Abramsky.
Abramsky says carrier meetings and store visits in the U.K., France and Germany “point to solid European iPhone momentum.†He expects the company to sell 400,000-500,000 iPhones in Europe in the fiscal first quarter ending December 31, of an expected 1.65 million units. He sees 4 million units selling in Europe in calendar 2008; he raised his forecast for total calendar 2008 iPhone units to 12.5 million from 12.1 million.
Abramsky says that despite a lack of 3g and advanced Bluetooth functionality - and despite the high price of the device - “iPhone appears to be an early hit with European Smartphone consumers.†He says the phone outselling some competitive smartphones at O2, Orange and T-Mobile stores, including the Nokia (NOK) N95 and E-Series, the Samsung Blackjack, LG PRada and HTC Touch and Herald.
And he adds that once Apple launches a 3G version and spreads distribution to more countries, “European iPhone sales appear poised for material improvement in demand and momentum.â€
Abramsky tweaked his EPS outlook for the company; he now sees $4.81 for FY ‘08, up from $4.80; he goes to $6.02 from $6 for FY ‘09.
Apple today is up $4.94, or 2.8%, at $184.75.
I told you weeks ago that my own retail channel checks flew starkly against all the hysteria being whipped up about “disappointing” sales in Europe
He’s way low on the total iPhone sales for Q1 though, IMO. 1.65M? Oh puleeez.
[quote author=“Tommo_UK”]More news on that RBC upgrade:
Apple: European iPhone Sales Solid, RBC Says
Posted by Eric Savitz
Sales of the Apple (AAPL) iPhone in Europe are better than some investors thought, according to a research note today by RBC Capital’s Mike Abramsky.
Abramsky says carrier meetings and store visits in the U.K., France and Germany “point to solid European iPhone momentum.†He expects the company to sell 400,000-500,000 iPhones in Europe in the fiscal first quarter ending December 31, of an expected 1.65 million units. He sees 4 million units selling in Europe in calendar 2008; he raised his forecast for total calendar 2008 iPhone units to 12.5 million from 12.1 million.
Abramsky says that despite a lack of 3g and advanced Bluetooth functionality - and despite the high price of the device - “iPhone appears to be an early hit with European Smartphone consumers.†He says the phone outselling some competitive smartphones at O2, Orange and T-Mobile stores, including the Nokia (NOK) N95 and E-Series, the Samsung Blackjack, LG PRada and HTC Touch and Herald.
And he adds that once Apple launches a 3G version and spreads distribution to more countries, “European iPhone sales appear poised for material improvement in demand and momentum.â€
Abramsky tweaked his EPS outlook for the company; he now sees $4.81 for FY ‘08, up from $4.80; he goes to $6.02 from $6 for FY ‘09.
Apple today is up $4.94, or 2.8%, at $184.75.
I told you weeks ago that my own retail channel checks flew starkly against all the hysteria being whipped up about “disappointing” sales in Europe
He’s way low on the total iPhone sales for Q1 though, IMO. 1.65M? Oh puleeez.
[quote author=“CdnPhoto”]
Jim Goldman responds to the FUD. He goes after the article item by item, blowing it apart.
What’s more, go back a few years, to January 2004 and read an article that Fast Company did entitled: “If He’s So Smart… Steve Jobs, Apple and the Limits of Innovation.” That article showed Apple hitting the innovation wall, that its days as a true market and tech leader were numbered. Think about it: if investors took that article as gospel, they’d have missed out on better than $140 billion in market cap gains since, and the 110 million iPods sold over that time.
Nice catch. Thanks.
Well reasoned, moderate tone, yet obviously disgusted with the FUD and the fact that his network is giving publicity to the FUDster.
Jim Goldman also has a second follow-up post from 12/4, written after the FC editor responded to points made in Goldman’s first post:
It’s interesting watching one journalist call out another journalist, with Jim basically calling FC a ‘media whore’ that’s doing nothing more than generate controversy in order to sell magazines.
[quote author=“Gridlock”]Jim Goldman also has a second follow-up post from 12/4, written after the FC editor responded to points made in Goldman’s first post:
It’s interesting watching one journalist call out another journalist, with Jim basically calling FC a ‘media whore’ that’s doing nothing more than generate controversy in order to sell magazines.
What’s interesting to me is that a lot of pundits and magazines make predictions that are totally off base, but people never call them on it. A few months later, it’s off to the races again, with a new round.
A lot of these magazines know that there’s no news value to a “me too” article praising Apple. Being a contrarian, especially with something outrageous, sells copy. Dvorak has made a career out of this, but there are many others out there.
Can Apple really keep those stores filled with buying customers? Certainly not all three New York stores filled year ‘round. If they can, then that would be totally awesome. Talk about customers being served Big Macs and I don’t mean McDonalds Big Macs.
[quote author=“Constable Odo”]Can Apple really keep those stores filled with buying customers? Certainly not all three New York stores filled year ‘round. If they can, then that would be totally awesome. Talk about customers being served Big Macs and I don’t mean McDonalds Big Macs.
I’m surprised someone from NYC would be asking that question.
Considering the Byzantine road and traffic arrangements in the City and sheer size of New York’s daytime (and evening) population, it’s not challenging to keep all three stores busy.
Considering there’s about a dozen Apple stores within a one-hour drive of my home and there are no concerns about market saturation, three NYC stores is certainly not a risk.
[quote author=“Constable Odo”]Can Apple really keep those stores filled with buying customers? Certainly not all three New York stores filled year ‘round. If they can, then that would be totally awesome. Talk about customers being served Big Macs and I don’t mean McDonalds Big Macs.
Population of NYC (alone—not metro area): about 8.2 million
Population of Portland, OR, Metro area: about: about 2.1 million
There are three Apple Stores in the Portland area. Two of them are in Tigard , a southern suburb—and are only 4.8 driving miles apart. I would think that a city with 4x the population would easily support three stores.
I don’t know if this will move the market, but MarketWatch readers really like Steve Jobs as a CEO.
SAN FRANCISCO (MarketWatch)—MarketWatch readers have given an overwhelming thumbs up to Steve Jobs, chief executive of Apple Inc., naming him the MarketWatch Readers’ Choice CEO of the Year for 2007.
[quote author=“stkstalker”]SAN FRANCISCO (MarketWatch)—MarketWatch readers have given an overwhelming thumbs up to Steve Jobs, chief executive of Apple Inc., naming him the MarketWatch Readers’ Choice CEO of the Year for 2007.
