07:38 AAPL Apple Computer: Color on quarter (74.53 )
Thomas Weisel notes AAPL reported solid Q4 results with Mac units of 1.61 mln came in roughly in line with their recently increased numbers (following positive checks during the quarter). Firm notes that DRAM prices were up during the quarter while NAND was stable, and although AAPL refused to comment, they believe that AAPL is benefiting from the lower cost on other components due to INTC transition...
ThinkEquity believes upside in fiscal 4Q06 was driven by PC share gains, strong Retail Store performance, and the iPod refresh. Although it has yet to file June-quarter financials (fiscal 3Q06), firm says AAPL is well-positioned to deliver in Dec and beyond thanks to multiple catalysts that include: 1) further CPU share gains; 2) strong BtB momentum; 3) retail store success into the holidays; 4) a software upgrade cycle; and 5) a likely move into the enterprise...
Prudential notes AAPL reported strong Q4 earnings on higher than expected sales of MacBooks and iPods. Firm expects Mac momentum to continue, but thinks upside to street estimate will be harder to come by in iPods due to increasing competition and the absence of new product offerings, and on the margin front due to recent price cuts and stabilizing component prices. Firm believes AAPL's new product pipeline appears promising and expects the co to unveil two cellular phone models and a new wide screen video iPod early next year. Firm believes these products represent significant upside earnings potential for the co, although near-term questions remain on the timing and ramp of these new products.
