Apple Inc (AAPL)

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08:36 AAPL AppleInsider discusses Citigroup note on Apple's Leopard, 3G iPhone and new iPod Nanos (94.25 )

AppleInsider reports analysts at Citigroup are recommending that investors buy shares of Apple ahead of upcoming product launches, which they say will include Mac OS X Leopard, a touch-screen video iPod, higher capacity iPod nanos and a 3G version of the iPhone.

As part of an in-depth co overview released to clients earlier this week, analyst Richard Gardner and his team said they expect Mac OS X "Leopard" to launch on June 11 at the co's Worldwide Software Developers Conference. They estimate the release will generate between $50 and $75 mln in incremental rev per quarter for Apple during its first few quarters on the mkt, boosting the co's EPS by about a nickel with its attractive 85% gross margin. Based on Gardner's checks, iPhone will proceed the launch of Leopard in "late-June."

The analyst told clients the device is likely to deliver more attractive economics than Wall Street is expecting, giving Apple's willingness to work exclusively with Cingular and its sticky, high-rev subscriber based. Gardner also told clients to keep a look out for new iPod models beginning in the fall, including a 12-16GB nano priced at $249 and a video iPod with the same touch screen as the iPhone priced at $250-400.