The forthcoming shipment of the Apple TV coupled with the Cupertino-based company's highly anticipated iPhone in June led research firm Bear Stearns to upgrade Apple shares. Prudential today said it met with Apple executives, revealing that the new phone maker expects to sell most of its iPhones through its own retail stores, according to AppleInsider. Apple also expects to achieve per-store sales levels similar to brick-and-mortar retailer Best Buy, according to Prudential, once the iPhone begins shipping later this year. Bear Stearns points to higher visibility with regard to Apple's business plan, citing potential expansion for the company in each of its four potential markets -- which include computers, music, phones, and likely video. The firm also maintains an earnings-per-share estimate of $0.65 on revenues of $5.2 billion for Apple's second quarter of 2007, reflecting a 47 percent sequential decline in iPods to 11.1 million and a 13 percent sequential decline in Macs to 1.4 million. The firm is guiding on earnings-per-share of $0.54-$0.56 on revenues of $4.8-$4.9 billion, according to SeekingAlpha.

Bear Stearns suggests viewing Apple "non-linearly," using the fact that the iPod mini's successor was the iPod nano rather than a smaller mini to stress that fact. The firm also suggests that investors avoid applying "Old Steve" behavior to Apple today, referring to big mistakes made by the company's leader in years past that resulted in disaster. Bear Stearns is maintaining a post-option earnings-per-share for fiscal year 2007 at $3.25 and $4.10 for fiscal year 2008.