Analyst: Apple to Report Strong June Quarter

Apple will likely report above-guidance earnings for its June quarter during its regular investor conference call on Wednesday. The Mac and iPod maker could report US$5.3 billion in revenue, above the Wall Street consensus of $5.28 billion, according to American Technology Research analyst Shaw Wu.

"We see continued Mac strength driven by updated MacBooks and new LED-based MacBook Pros and seasonal iPods with little signs of cannibalization from iPhone," he said.

Mr. Wu is expecting Apple to report 1.64 million Macs sold for the quarter, up 8 percent quarter over quarter, and 24 percent year over year. He is projecting 9.7 million iPods sold for the quarter, down 8 percent quarter over quarter, and up 20 percent year over year.

The iPhone isnit expected to add much to Appleis bottom line for the quarter considering it was available for only two days. Mr. Wu commented "We are modeling a conservative 250,000 units though we would like to note that this is at a much faster rate than Appleis previous big hit iPod nano, which sold about 59,000 units per day."

Looking forward, he predicts that Apple will stick with its conservative guidance for the September quarter. Mr. Wu is modeling revenue at $5.8 billion and $0.77 EPS for the quarter, below the consensus of $6.05 billion and $0.83 EPS.

Mr. Wu is maintaining his "Buy" rating and $165 target price for Appleis stock. Apple is currently trading at $143.73, down 0.0.2 (0.01%).

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