This Day On The Street
Continue to site
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

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 - Get Report) 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 - Get Report) 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."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
QCOM $50.52 0.00%
T $38.82 0.00%
VZ $50.94 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs