Apple forecast beats Wall Street view
Thursday, 22 July 2010
SAN FRANCISCO, July 20 (Reuters): Apple Incorporation gave an unusually upbeat revenue forecast that trounced Wall Street's expectations and eased fears that the "Antennagate" controversy around its iPhone 4's reception would hurt sales, boosting its shares 3 percent.
It reported also a surprisingly large 33 per cent spike in Mac computer sales -- helped partly by a strong showing in Asia -- that beefed up June-quarter earnings, as iPad and iPhone business came in largely in line.
But it was a revenue projection sharply ahead of Wall Street's targets that stole the limelight. Apple's projected $18 billion in revenue for the current quarter exceeded Wall Street's prediction of about $17 billion -- an unusually optimistic forecast for a company notorious for its conservative outlook.
"This is one of the few times in recent memory that Apple's guidance has been ahead of the Street, at a time when investors were getting concerned the iPhone 4 antenna issues could hamper sales," said Oppenheimer & Co analyst Yair Reiner. "Apple's sending a strong signal it sees things differently."
The so-called "Antennagate" saga has weighed on Apple's shares and outlook. A defiant Chief Executive Steve Jobs has called poor smartphone reception an industrywide problem, but rival CEOs and experts dispute that claim.
It reported also a surprisingly large 33 per cent spike in Mac computer sales -- helped partly by a strong showing in Asia -- that beefed up June-quarter earnings, as iPad and iPhone business came in largely in line.
But it was a revenue projection sharply ahead of Wall Street's targets that stole the limelight. Apple's projected $18 billion in revenue for the current quarter exceeded Wall Street's prediction of about $17 billion -- an unusually optimistic forecast for a company notorious for its conservative outlook.
"This is one of the few times in recent memory that Apple's guidance has been ahead of the Street, at a time when investors were getting concerned the iPhone 4 antenna issues could hamper sales," said Oppenheimer & Co analyst Yair Reiner. "Apple's sending a strong signal it sees things differently."
The so-called "Antennagate" saga has weighed on Apple's shares and outlook. A defiant Chief Executive Steve Jobs has called poor smartphone reception an industrywide problem, but rival CEOs and experts dispute that claim.