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Is it time to bob for an Apple?

In yesterdays article I predicted that Apple would blow away the earnings numbers but would not do a Google and rocket up 10%. So far I seem spot on. The main reason being iPad deliveries falling short because of parts. Not a huge surprise they are having trouble getting parts as where there are rumors there is usually some basis for such. When people say the supply lines are tight that usually means they are producing everything they can and demand is not being met. In reality if that is the worst problem your company has in that demand is too high seriously you are doing very well. Especially in the case of the iPad where there is nothing and I repeat nothing to compete with it in this space (yes I have 2). So pent up demand is not going away just moving to the holidays. Speaking of which early estimates are Apple will be producing 2.5M/month by year end. Some other eye shocking numbers are new estimates put iPad sales at 43M in 2011 and 63M in 2012. Bazinga!

Once again it was the iPhone leading the way with over 14.1M units sold in the quarter. Imagine when Verizon gets an iPhone. Talk about pent up demand.

So where does this lead the mobile business of Apple? Once the 10K comes out I will try and dissect the Mobile Advertising revenues from all the other revenues that are reported. This may not be possible as it may be buried inside one of the other components such as itunes (another amazing business). Any way you look at it though the pieces are coming into place for Mobile to be a big part of Apple going forward. All these devices put them in the cat seat for unbelievable advertising opportunity. It will be interesting to see if they get it like Google does.

On the stock front now may be the time to dip your head in the freezing water for Apple shares. Long term its hard to imagine a better company. If its any consolation IBM which also beat estimates is getting hit after-hours. When the market is going up you can never exceed expectations. Or perhaps the surprise to the upside was already priced in?


Disclosure: No Positions