Wall Street Loves Apple's iPhone 4

Despite reports of problems with the iPhone 4's antenna, Wall Street is salivating at the prospect of another Apple blockbuster.
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CUPERTINO, Calif. (

TheStreet

) -- Despite reports of

iPhone 4 problems,

Wall Street is salivating at the prospect of another

Apple

(AAPL) - Get Report

blockbuster.

Already the iPhone 4 looks set to

challenge the launch of the iPhone 3GS

, which saw a million units shipped in its first three days.

A new black iPhone 4

"With first day pre-orders previously announced at 600,000 units, we believeApple could sell north of 1 million units by tomorrow," explained Daniel Ernst, an analyst at Hudson Square Research, in a note released on Thursday. "

This would likely representupside to our June quarter estimate of 7.5 million and our September quarterestimate of 8.5 million."

Like a gadget-freak's holy grail, the new iPhone 4 has prompted phenomenal interest from consumers, to the extent that both Apple and its telco partner

AT&T

(T) - Get Report

have

struggled to cope with demand

. Even amid all the chatter about antenna problems,

supply constraints

and

manufacturing issues

, the fourth coming of the iPhone looks like good news for Apple investors.

"We believe Apple has at least two blockbusters, the iPad and the iPhone 4, on its hands in the near future," added Rajesh Ghai, an analyst at Think Equity, who gives Apple a buy rating. "

These have the potential to drive its growth into high gear in the second half of 2010, and hence drive material upside beyond current street estimates."

Analysts surveyed by Thomson Reuters expect Apple to post revenue of $59.78 billion this fiscal year, and earn $13.52 a share.

"While legacy iPhone3G/3GS continues to be a majority of the mix, iPhone 4 builds are ramping steadily through year end," explained Vijay Rakesh, an analyst at Sterne Agee, in a note released on Thursday. "Current iPhone 4 demand, we believe, far outstrips near-term supply and builds."

Rakesh, who also rates Apple a buy, raised his fiscal 2011 estimate for iPhone unit shipments from 47 million to 54 million. The analyst also raised his Apple price estimate from $300 to $320.

Apple's stock, which has recently hit a number of 52-week highs, is currently trading around $271.

-- Reported by James Rogers in New York

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