Personally, I just think that expectations ran a little ahead of themselves, but some analysts seem to think that the iPod sales figures (5.3 million) were disappointing. Apple didnt break out the sales of the Shuffle, but SSB estimates that they were around 2 million (with some going to fill the inventory channel).
forbes.com
Apple's Disappointing IPod Unit Demand
04.14.05, 9:41 AM ET
Banc of America Securities said Apple Computer (nasdaq: AAPL - news - people ) had a "good" fiscal second quarter and estimates. Banc of America noted that Apple is gaining traction in systems and outgrowing the market by four times, "consistent with our long-term model." But the research firm noted that although Apple believes it gained market share in MP3 players February, Banc of America believes share gains slowed in March. "[W]e were very disappointed in the iPod unit demand, especially since the Shuffle had solid growth (from nothing) out of the block," the firm said. Banc of America, which rates the company at "buy," added that "Apple's weak unit sales mean we need to review our MP3 market estimate of 50 million units this year and 60 million in 2006." The firm raised the 2005 earnings estimate on Apple to $1.29 per share from $1.06, and raised the 2006 estimate to $1.40 from $1.25, but trimmed the 12-month price target to $47.50 from $48.50 on the compressed valuations of peers and "new concerns around the MP3 market." In its coverage of enterprise software, Banc of America's two top picks are Dell (nasdaq: DELL - news - people ) and EMC (nyse: EMC - news - people ), both rated at "buy" with respective price targets of $44 and $15.25. |
