updated 10:35 am EDT, Mon May 20, 2002
UBS Warburg analyst Don Young raised has raised his estimates third quarter and full year estimates on Apple, citing lower costs for building its popular iMac personal computer, according to Reuters.
Young raised his estimates for Apple's 2002 earnings to 56 cents a share from 54 cents a share based on an increase in his prediction for the third quarter and for the quarter ending in June, Young raised his EPS outlook to 14 cents from 12 cents and maintained his fourth-quarter outlook of 20 cents.
"Apple's good fortune of having strong iMac demand and a large backlog backfired on the company when component costs rose and created pressure on gross margins...In addition, our retail channel tracking shows iPod sales building, indicating a potential upside to our June quarter unit forecast of 52,000 units.We no longer view Apple as in a battle for PC market share -- instead we see the platform becoming a premium PC capturing selective PC demand. We reiterate our strong buy rating."