AAPL reaches all-time high

Andrew Neff of Bear Stearns today that Analyst Andrew Neff's comments quelled concerns that Apple might not be able to meet holiday demand. Neff noted that shipment times have recently been reduced to 1-3 days from 3-5 days.

"Our channel checks with retailers and component vendors indicate that demand for iPods (both nano and video iPod) continue to remain strong and could be significantly higher than our initial assumption for the holiday season," Neff wrote in a research note.

Looking to general consumer trends, the analyst added that "hot" products have historically seen sequential sales growth of 75 percent to 100 percent during the holiday season, a critical time for manufacturers and retailers.

The analyst now expects iPod volume to triple to 14.1 million units in the first quarter, compared with an earlier estimate of 10.4 million. He also predicted annual volume will nearly double to 44.8 million, about 11 million more than previously thought.

Neff raised his fiscal 2006 and 2007 earnings-per-share estimates for Apple to $2.12 and $2.42, up from $1.72 and $1.92, according to the report.

by MacNN Staff