Apple up even on the back of the iPhone alone
Without even considering the new iPad tablet computer, which is selling like the proverbial hotcakes, Apple seems to be riding on the crest of a wave of prosperity, led primarily by their high-flying iPhone.
Many analysts are expecting the iPhone sales numbers and revenue to soar in the near-term, with many talking of annual growth rates at the 80 percent level, period to period. That is a truly mind-boggling growth rate, especially considering the high current (and past) level of sales that the iPhone has enjoyed. Kevin Hunt, an analyst at Hapoalim Securities, wrote this week, “Longer term, we believe the Street is underestimating the growth potential in smartphones, where Apple is uniquely positioned to gain share, thus the iPhone is likely to be a source of upside surprise for Apple over the next year.”
Even with the iPad sales numbers making a lot of jaws drop, many analysts believe that it will be the iPhone that will fuel a spectacular quarter (and perhaps year) of growth for Apple. Financial analysts believe that, on average, about 6.8 million units have been sold for the quarter, compared with 3.8 million units in the same period last year. That is simply a gigantic growth rate. At the event last week at which Apple unveiled its latest operating system (iPhone OS 4.0) for the device, the company said that it had sold 50 million iPhone units to date, according to a Wall Street Journal story. Almost immediately, analysts extrapolated that statement to mean that unit sales for the March quarter would have been at least 7 million, which is also pretty spectacular.
Echoing what Kevin Hunt said, Toni Sacconaghi of Bernstein Research said earlier in the week, “While several opportunities exist (including iPad sales, gaming revenues, enhanced Apple TV), we believe that the biggest opportunities remain centered around further penetration of the iPhone, including broadening distribution to other carriers and a lower priced, non-data plan iPhone offering.” The iPhone, and to a lesser degree the iPod, have fueled the revenue stream that has seen Apple growing so fast in recent years. It would appear that the iPhone, at least, is positioned well to continue that trend.
Related posts:
