Apple (AAPL) reports 2Q12 earnings results on April 24th. The Street expects:
- Revenue: $36.3 billion
- EPS: $9.89
- iPhone shipment: 30 million
- iPad shipments: 13 million
- Q2 revenue guidance: $37.2 billion
Heading into earnings, investors can expect:
- Continued market share gain by iOS
- Strong iPhone and iPad shipment numbers
- iPhone 5 to be the next catalyst
iOS Share Gain
Earlier this month, comScore released its North America mobile survey data that highlighted continued share gain by iOS. For the three months ending February, iOS increased its market share to 30.2%, compared to 29.5% the previous three month. Google's Android (GOOG) also saw its share gain to 50% over the same period.
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iPhone and iPad shipments are on track to beat Street consensus
The Street currently estimates 30 million iPhone shipments for the quarter. I believe Apple can easily beat this estimated due to:
- Increasing penetration of new wireless carriers, namely the recent deal with China Telecom (CHA) that saw over 200,000 pre-orders
- Large iPhone installed base should drive meaningful replacement cycle
For the iPad, the Street currently expects 12 - 15 million units. Despite the overheating issue shortly after the launch of the new iPad, a survey by ChangeWave Research that was published earlier this month indicates that 98% of the users are "satisfied with the product, while the rest are "Somewhat Satisfied" and none are "Somewhat Unsatisfied".
iPhone 5 On Deck For 2H12
The new iPhone 5 is expected to be launched in June and features lighter body, LTE capability, bigger screen and longer battery life. I believe the new iPhone will invigorate the current iPhone user base and attract new users at the expense of RIM (RIMM), and allow the company to maintain its above-average growth trajectory for the remainder of the year.