by CIO Staff

Mac Sales Offset Slowing iPod Growth

Jun 16, 20062 mins
IT Leadership

Analysts expect Apple to deliver another great quarter, observing the company is selling more Macs to offset slightly slower iPod sales.

Analyst Shaw Wu of American Technology Research rates the company’s stock as a “Buy.”

Following recent checks, the analyst raised his Mac unit shipments forecast to 1.2 million from 1.13 million, but reduced his iPod sales forecast to 8.3 million from 8.5 million. He expects Apple to deliver $4.4 billion in revenue in its current quarter.

The analyst observes that Apple’s “Mac business appears ahead of plan with the Intel transition mostly complete, and with Boot Camp helping drive switchers and Mac users to upgrade.”

Wu warns that his checks indicate iPod sales are slightly weaker than planned, “despite a strong reception from its recent back-to-school promotion.”

He said, “We are seeing weaker iPod nano shipments (we believe in part due to Apple drawing down inventory) offset by strength in vPods and shuffles.”

“We continue to believe the iPod nano is in need of a refresh and will likely see one in the September quarter,” he adds.

Meanwhile, Merrill Lynch analyst Richard Farmer also reduced his iPod estimate from 9.2 million to 8.1 million sales. He also lowered his full-year sales estimates to 39.4 million from 43.4 million units.

-Jonny Evans,

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