IPhones this quar­ter?

Financial Mirror (Cyprus) - - FRONT PAGE -

48 mln iPhones. Any­thing be­low 46 mln will send the stock into a spi­ral, drop­ping it well down from its nearly 52-week high. Ap­ple shares trade near $130, up 37% in the past year. The com­pany’s mar­ket cap has reach $747 bln. The num­ber two public cor­po­ra­tion in terms of mar­ket cap is energy jug­ger­naut Exxon Mo­bil Corp. (NYSE: XOM) at a mere $405 bln.

Ap­ple’s rev­enue in the April quar­ter reached $58 bln, with iPhone sales of 61 bln. Ap­ple man­age­ment said that rev­enue in the most re­cent quar­ter would be $46 bln to 48 bln. Ap­ple is no­to­ri­ous for of­fer­ing very con­ser­va­tive fore­casts. Some an­a­lysts be­lieve that this tac­tic al­lows the com­pany to al­most al­ways beat ex­pec­ta­tions, which in turn drives its stock higher.

Ex­pec­ta­tions for the quar­ter about to an­nounced, how­ever, have al­ready out­run Ap­ple’s forecast. An­a­lysts, based on con­sen­sus, have posted ex­pec­ta­tions at the very high end of Ap­ple’s pre­dic­tion.

For Ap­ple to truly top what Wall Street ex­pects, it would have to have sold 50 mln iPhones last quar­ter. Al­most any forecast that high has as a foun­da­tion in Ap­ple’s sales in China. Man­age­ment has said sev­eral times that ex­tra­or­di­nary sales in China will not only be the key to suc­cess now, but will be the ma­jor driver of Ap­ple’s suc­cess in the years to come.

Did Ap­ple sell 50 mln iPhones in the last quar­ter? That re­sult is the only thing that can lift the stock higher. Ap­ple may re­lease a new iPhone in the cur­rent quar­ter, but if it did not sell 50 mln in the most re­cent quar­ter, no one will care. (Source: 24/7 Wall St.com)

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