Apple (NASDAQ:AAPL): Expect massive iPhone Q4/F08 shipments – RBC
Couple of firms are out with positive comments on Apple (NASDAQ:AAPL):
– RBC Capital says they expect massive iPhone Q4/F08 shipments of 5.1M, up 356% Y/Y, 629% Q/Q (including est. 1.5M unit sell in to 22 countries) and 6.5M Q1/F09, up 181% Y/Y (sellthrough, channel fill to 70 countries). Q3 iPhone expected 700k (no revenue) and Q4/Q1 iPhone rev/EPS expected at $700M/$0.10 EPS and $1.1B/$0.15 (24 mo acctng).
Rising Investor Sentiment Expected. Along with rising street iPhone estimates, the firm expects Q4/Q1 iPhone results to boost investor sentiment over rising visibility to Apple’s global iPhone dominance and market share. They continue to forecast 14M iPhones CY08 rising to 24M CY09, with iPhone’s TAM (Total Addressable Market) handset share expected to rise from 0.3% CY07 to 1.7% CY09.
Near-term valuation pressures are expected to dissipate, as investors recalibrate around global iPhone market share gains and EPS upside. Reits Outperform and $220 tgt.
– Morgan Stanley notes that based on their recent trip to Taiwan, they believe order cuts are now complete in the notebook market whereas downside risk remains for handsets and other consumer products. Firm expects to see a solid seasonal bump in notebook shipments as battery cell supply improves and Montevina availability stimulates new product introductions this summer. They believe AAPL (notebooks 25% of profits), DELL (20% ofprofits) and STX (15% of profits) are best positioned to capture this trend in 2H08.
Notablecalls: It looks like AAPL make a s-t bottom on Friday and will enjoy some buy interest in the near term.
