IPods, Tiger to head up Apple report By Rex Crum, MarketWatch Last Update: 10:48 AM ET July 13, 2005
SAN FRANCISCO (MarketWatch) - Apple Computer will be in the market spotlight Wednesday as many industry analysts expect an upbeat third-quarter report, and strong outlook from the maker of iPods and iMacs. Analysts surveyed by Thomson First Call estimate Apple (AAPL) will post earnings of 31 cents a share on $3.34 billion in revenue. During the same period a year ago, the company earned 9 cents a share on $2 billion in revenue. Sales of iPod will be one of the most closely watched gauges of Apple's business health. Most analysts expect Apple will report between 5.4 million and 5.5 million iPod shipments for the three months ended June 30. But the iPod won't be the only key to Apple's quarter. Analysts are looking for good signs of Macintosh sales, which should be helped by an iPod "halo effect." Richard Chu, of SG Cowen, said Tuesday a survey of more than 1,400 U.S. consumers suggests that the halo effect is real, and is leading to more Mac sales. Chu estimates that Apple could claim more than 6% of the U.S. personal computer market by 2008. Chu also said that upgrades and new computers running Apple's new Tiger operating system, are also boosting Mac sales. Chu said that out of his survey's respondents, 13% claimed to have already upgraded to Tiger and 37% plan to "definitely upgrade" to the operating system within the next 12 to 18 months. Robert Semple, of Credit Suisse First Boston, said more than 2.3 million shipments of Apple's new Tiger operating system could help boost the company's profit by as much as 6 cents a share above analysts' average estimate. "Tiger is the key to the quarter," Semple said in a research note. "The strong Tiger number implies solid Mac sales." Keith Bachman, of Banc of America Securities, said he expects Apple to report Macintosh shipments to rise between 26% and 28% over last year's 876,000 units. Bachman said that if Apple hits those targets, it should be enough to give a mildly positive boost to the company's stock. Apple shares rose 14 cents to close Tuesday at $38.24. Jeff Slyn, Owner SLYN Systems & Peripherals (502) 426-5469 serving Kentuckiana clients 7 days a week since 1985! | The next meeting of the Louisville Computer Society will | be July 26. The LCS Web page is <http://www.kymac.org>. | List posting address: <mailto:macgroup at erdos.math.louisville.edu> | List Web page: <http://erdos.math.louisville.edu/macgroup>
