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Sterne Agee: Components, production looking up for Apple

updated 09:35 am EDT, Fri July 15, 2011

Firm calls for $24.6B in Q3, $27.7B for Q4

Supply chain checks show increased production capacity, better component availability and cheaper component pricing for Apple, according to Sterne Agee analyst Shaw Wu. Cheaper parts in particular are forecast to help Apple in its third-quarter results, which will be announced on Tuesday. Wu is calling for $24.6 billion in revenue with $5.98 in EPS, based off a 39.8 percent gross margin, as compared with a consensus of $24.7 billion and $5.73 in EPS stemming from a 39 percent margin. Apple itself has only been guiding to $23 billion, $5.03 in EPS and a 38 percent margin.

Sterne Agee and the consensus are roughly in line when it comes to unit predictions, Wu comments. The analyst is anticipating 17 million iPhones, 6.8 million iPads, 3.9 million Macs and 8.3 million iPods. iPods have been on a continual decline since the introduction of the iPhone.

Consider Apple's fourth quarter, which wraps toward the end of September, Wu is estimating $27.7 billion in revenue and $6.57 in EPS versus a consensus of $27.6 billion and $6.37. "We see several potential product catalysts ahead including the launch of iCloud and its [Apple's] next-generation operating systems including Mac OS X Lion and iOS 5; further refreshes of its Mac line (MacBook Air, MacBook, Mac mini, Mac Pro) to the Sandy Bridge architecture; and an interim but important iPhone update in the Fall timeframe featuring dual-core processors and better cameras," he elaborates. Lion and new MacBook Airs are thought to be arriving next week.

by MacNN Staff




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