Filed under: Analysis / Opinion, Apple Financial, Apple, iPhone
AAPL earnings buoyed by two days of iPhone sales
According to the Dow Jones Marketwatch, apparently Apple's earnings last quarter are going to be much higher thanks to something called the iPhone. You probably haven't heard much about this device, but our sources tell us it's some sort of hybrid between a Personal Digital Assistant and one of those phones you can use in your car.Investors are cooing about the tiny "iPhone", because even though it only appeared on Apple's quarterly cycle for two days, the estimated 500,000 units sold in the first weekend will probably be listed as at least partly responsible for the 34% rise in AAPL's profits. The iPod didn't do too badly either-- everyone's expecting Apple to announce that around 10 million iPods were sold last quarter also.
And not surprisingly, bigger things are on the way-- one analyst says "the iPhone will have an even stronger halo effect than the iPod on Macintosh's market share." If two days of the iPhone can do this much, how big will AAPL get with a whole quarter of the gadget?
Reader Comments (Page 1 of 1)
Bill said 1:05PM on 7-20-2007
One analyst just put a $205 price target on AAPL. I guess it's time to buy more shares. :)
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jason said 1:11PM on 7-20-2007
It won't make much of a difference because of the accounting apple will be applying to each phone... Each sale will be spread over 24 months so if they sold 500k in the first two days that means only 12.5 million in revenue
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marcosmalo said 1:29PM on 7-20-2007
Woah! It's like a regular telephone except you can use it in your car? Jobs is a genius! This is going to sell like hotcakes. The public display of affection is just extra gravy.
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Mitch said 1:37PM on 7-20-2007
This post is completely misleading and is not at all what the actual article talks about.
Why do I disagree with your take on the article:
"According to the Dow Jones Marketwatch, apparently Apple's earnings last quarter are going to be much higher thanks to something called the iPhone."
because in the article you link to:
Gene Munster of Piper Jaffray said in a research note that iPhone revenue "will not be material" to Apple's results this time, even if those sales approach the 500,000 units that some analysts estimate were sold during the first weekend of the iPhone's release. The analyst estimates that, at most, Apple will recognize about $12 million in sales from the iPhone.
In case you missed it....
iPhone revenue "will not be material" to Apple's results this time
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matguard said 1:54PM on 7-20-2007
I can attest to the "halo" effect.
Two weeks after purchasing my iPhone, my laptop was in need of replacement. I looked both at Dell refurbished, and refurbished Mac.
The difference for comparable machine (Dual core 2.0Ghz, 1Gb ram and 60Gb HD) was $135 (in dells favor), but the inclusion of the iSight Camera, Software, and my my great experience so far with my iPhone prompted me to go Mac.
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