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04-03-2012, 10:02 PM #1
JP Morgan iPad and iPhone Estimates for Q1 2012 Increased
The investment bank, J.P. Morgan has recently made “significant increases” to its projections for both the iPad and iPhone for the first quarter of 2012. This is all after research indicated the “major upside potential” to Apple’s sales numbers.
The price target was raised for Apple from $625 to $715 recently by analyst Mark Moskowitz in a note to investors. The firm ended up raising its unit shipment estimates for the company on “better than expected unit sales activity of the iPhone and iPad.” According to Moskowitz, they “are not trying to inflate expectations ahead of the [March quarter] print. Their intent is to communicate the incremental delta in their new and old estimates as identified by their recent research.”
The company previously expected iPhone shipments to reach 28.1 million in the first quarter of 2012 but the company now believes that shipments will end up reaching 31.1 million units. In turn, iPhone shipments for the year are now forecast at 138.2 million, up from 128.7 million. Numbers aside, analysts believe that this year’s iPhone revamp will arrive in the second half of 2012 and include a “thinner body and LTE capability” with on further speculations at this point.
As far as the iPad goes, the firm is now estimating shipments of 13.8 million in the March quarter, compared to a prior projection of 10.1 million units. 2012 shipments of iPads are believed to rise to 69.6 million, up from the previous 59.8 million.
Furthermore, Moskowitz mentioned that he expects Apple to “refresh its MacBook portfolio, including the Air, in the next three months.” The firm believes that the company needs to improve the specifications and features while introducing lower price points in order to stay ahead of price reductions from the “Ultrabook crowd.” He continued by saying that the firm thinks that “Apple needs to sustain its competitive edge on the technology front. Otherwise, it is our view that investors could worry that future Apple product refreshes (such as those of the iPad or iPhone) could lose customer appeal.”
Last but not least, the analyst pointed to enterprise PCs as a “long-term catalyst” for Apple. It is expected that the “eventual introduction” of Microsoft Office will crack open the enterprise market to Apple’s tablet. Enterprise PCs represent 40% of global PC units but enterprise tablets stand at an estimated 10% of global tablet units. That being the case, Moskowitz sees room for growth as companies continue to adopt the iPad.