iPad expectations improve

Investors shouldn't expect Apple to have shipped as many iPhones during the June quarter as originally called for, says Kaufman Bros. analyst Shaw Wu. While earlier suggesting that as many as 9 million iPhones could be delivered, Wu has downgraded the quarter to 7.5 million units, a million below even Street consensus numbers. The problem is believed to be twofold: issues with screen supply, and more difficulty in drawing down old inventory.

Apple has created a dilemma for itself, Wu remarks, in that the current low-end iPhone -- the 8GB iPhone 3GS -- is a new product, unlike the 8GB iPhone 3G, which was simply marked down from its original $199 pricetag. The company may have had to draw down as many as 1.5 million old iPhones in the June quarter. Another million phones may be drawn down in the next quarter, but Wu is also raising an overall shipping forecast from 10.4 to 10.5 million units, on the assumption of better availability. For the whole of 2010, the analyst is holding at 40 million iPhones.

iPad estimates are on the upswing, with 3.5 million now thought to have been shipped in the June quarter, in contrast with a previous prediction of 3.3. The CY2010 number has also been raised, from 9.7 million to an even 10. Wu cites "stronger-than-expected demand," which is being hurt less and less by limited inventory.

The Kaufman price target for Apple stock has been elevated from $342 to $349. The latter company's Q3 results will be announced on July 20th, at roughly 2PM Pacific time, or 5PM Eastern.

by MacNN Staff