Apple (AAPL) iPad suppliers are currently forecasting shipments of 8-10 million units in calendar 2010, up from prior expectations of over 5 million, according to Morgan Stanley analyst Katy Huberty. She says suppliers expect to ship 2.5 million iPads in the first three months – and notes that every 1 million units generates about 25 cents a share in profits for Apple. That, she says, sets the stage for “significant earnings upside” in the June quarter.
Huberty writes that the Street “under-appreciates” the longer-term iPhone/iPad demand, and that Apple has the potential to eventually reach 10% of handset market share – 25% of smart phone share – in 3-4 shares. If that happens, she says, Apple can generate $23-32 a share in iPhone EPS, depending on pricing and margin strategy.
As Apple noted in a release this morning, iPads go on sale April 3; orders placed today will not be delivered until April 12; and 3G-capable versions will not ship until late April.
AAPL today is up $2.68, or 1.2%, to $233.58.
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