This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Apple's Core: The iPhone (Update 1)

Updated from 9:37 a.m. EST to provide investors comments regarding stock price in the seventeenth paragraph.

NEW YORK (TheStreet) -- Apple (AAPL) reports second-quarter earnings after the bell Tuesday and investors will be paying particularly attention to iPhone sales, given recent worries of a slowdown.

The importance of the iPhone is vast, as it accounted for 52.66% of Apple's revenue in its most recent quarter.

Concerns about iPhone sales strengthened last week, when Apple supplier Qualcomm (QCOM) said it's seeing supply constraints for its 28 nanometer (NM) chips during its second-quarter earnings call. The San Diego-based chipmaker said it's working on getting supply up to speed, but that's led some to believe Apple may not sell as many iPhones as it could.

Canaccord Genuity analyst T. Michael Walkley lowered his near-term iPhone estimates, as iPhone 4S sales slow down in developed markets. He did raise fiscal 2012 iPhone estimates based on expected strong demand for the iPhone 5.

How Apple Earnings Could Start the March to $1,000 >>

"Our recent channel checks indicated iPhone sell-through share has modestly declined in certain developed markets, and we expect this could continue as Android competitors ramp new smartphones during the June and September quarters and consumers start to hold off iPhone purchases in anticipation of the iPhone 5," Walkley wrote in his research note. He lowered his 2012 earnings estimates but raised his 2013 earnings.

Walkley rated Apple shares buy and raised his price target to $740 from $710.

Apple sold 37.04 million iPhones, 15.43 million iPads, 5.2 million Macs, and 15.4 million iPods during its all important first-quarter, which Bill Kreher, technology analyst for Edward Jones, described as "mind-boggling."

Stock quotes in this article: AAPL, QCOM, T, VZ 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs