Apple is bucking the trend by growing its market share and generating lots of cash in a weak economy, and the company looks to be ready to grow even more following its new product announcements at its World Wide Developer Conference last week. Broadpoint AmTech analyst Brian Marshall points to interest in the US$99 iPhone 3G, this Friday's iPhone 3G S release, and updated MacBook models.
"We are optimistic about recent market acceptance of the $99 priced iPhone and the upcoming 16/32GB iPhone 3G S launch [on] June 19th," Mr. Marshall said. He added that Apple's new iPhone, along with MacBook Pro and MacBook Air price cuts and the announcement of the iPhone Software 3.0 and Snow Leopard release windows, WWDC was a hit and surpassed expectations.
Looking forward, Mr. Marshall is projecting that Apple will sell 5 million iPhone, 2.2 million Macs, and 11.21 million iPods in its June quarter. He is also modeling a 35.5 percent gross margin on US$8.427 billion.
Mr. Marshall is rating AAPL as "Buy," and raising his target price from $150 to $175. Apple is currently trading at $135.81, down 0.54 (0.40%).