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Chuck Jones’ career has spanned twelve years as an equity analyst, sixteen years in various roles at IBM and most recently as a Wealth Strategist with Northern Trust. At Northern Trust he developed and implemented a go-to-market strategy to introduce Investment Management and Trust Services to... More
  • Apple: NAND Pricing Weakness Good For Margins 0 comments
    May 4, 2012 12:49 PM | about stocks: AAPL

    Apple (NASDAQ:AAPL) guided to 41.5% gross margins in the June quarter, down from 47.4% in the March quarter. While we know that Apple is very conservative with guidance since it has exceeded its gross margin guidance by at least 230 basis points for the past fifteen quarters Digitimes is reporting that NAND pricing continued to slide in the second half of April.

    While it is still early in the June quarter this is an indication that Apple should meaningfully exceed its gross margin and EPS guidance of $8.68. I am currently estimating a gross margin of 45% and EPS of $11.65.

    Disclosure: I am long AAPL.

    Stocks: AAPL
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