Apple forecast beats Street view, Mac sales jump
Tue Jul 20, 2010 8:49pm EDT
* Unusually upbeat Apple rev forecast exceeds Wall St view
* Mac sales behind strong Q3
* Execs play down iPhone 4 impact despite criticism
* Shares up 3 percent after-hours (Adds details from call, earnings report; updates shares)
By Gabriel Madway
SAN FRANCISCO, July 20 (Reuters) - Apple Inc (AAPL.O) 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 percent 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. [ID:nN16240091]
Complaints about the iPhone 4 surfaced soon after its June 24 release, with users saying its wireless signal weakens drastically when the device is held in a certain way. Apple's shares have fallen about 7 percent since June 24.
The company is offering free iPhone cases to those experiencing reception problems, but some analysts say it remains to be seen whether the matter has been put to rest.
Although the iPhone and iPad, launched in January, generated most of the headlines for Apple, it was the Mac computer that helped make the quarter for the company.
Apple sold 3.47 million Macs in the fiscal third quarter ended June 26, better than the 3.2 million Wall Street had expected.
It also continued to expand globally, with international sales comprising 52 percent of revenue. That was down from 58 percent last quarter, but up from 44 percent a year ago. Sales rose 66 percent in Europe and surged 160 percent in the Asia-Pacific region.
Chief Operating Officer Tim Cook repeatedly declined to say whether the "Antennagate" controversy had impacted sales of the iPhone 4, but called demand for the device "absolutely stunning."
"Let me be very clear on this. We're selling every unit we can make," Cook said.
| 