Apple Earnings Preview: It's Not All Bad (Update 2)
NEW YORK (TheStreet) -- Apple
Apple is in a dogfight in smartphones that it appears to be losing to Samsung. Samsung uses Google's
"Our research on Asian imports/exports shows that volumes for the first calendar quarter remained reasonably strong with robust ASPs," Perkins wrote in his note. "We believe that this in part reflects solid on-going demand for the iPhone models, one of the key determinants of the Asian ASP level." He believes the speculation that Apple has suffered a strong downturn in iPhone demand is way overblown, and kept his iPhone estimate for the quarter at 38 million units. He rates shares "buy" with a $560 price target.
Analysts polled by Thomson Reuters expect the tech giant to earn $10.01 per share on $42.31 billion in revenue. Analysts surveyed by Estimize are looking for earnings of $10.70 per share on $42.76 billion in sales.
There is a perceived notion in the market place that the iPhone 5 is not a major technological advancement over the iPhone 4 and iPhone 4S. The iPhone numbers from Verizon
While Apple generates over 50% of its revenue from the iPhone, the iPad may be the bigger market, in terms of overall users. In the past, CEO Tim Cook has said the iPad has a bigger opportunity, as tablets continue to eat away at PC sales. Research firm IDC showed the iPad had the lead in the tablet market at the end of the fourth-quarter 2012, at 51%.