Apple roundup: Wall Street talks iPad while Jobs gears up for WWDC keynote

Apple roundup: Wall Street talks iPad while Jobs gears up for WWDC keynote

Summary: Apple says Steve Jobs will deliver the WWDC keynote. Meanwhile, one analyst says Wall Street underappreciates Apple while another warns of an iPad shortage.


Does Wall Street "underappreciate Apple's future growth opportunities?"

Morgan Stanly analyst Katy Huberty called it that way in an investor's note that suggests that Apple shares could reach $400, given the momentum that it's having with mobile devices such as the iPhone and iPad. According to a Wall Street Journal report, Huberty suggests that strong demand for the iPhone and iPad, growth in China and inroads with the enterprise market position Apple for a strong year ahead, possibly two.

Shares of Apple opened today at $247.26 and are climbing, up more than 3 percent in regular trading today.

Huberty offers a pretty rosy outlook for a company that's dealing with a lot of pressure from Google, an up-and-coming thorn in Apple's side with its Android mobile devices. Google is quickly gaining ground with its army of Android devices and has sparked some interest in its Chrome OS, which is expected to be ready for prime-time later this year.

In the short-term, however, Apple is dealing with some iPad availability issues that could have an impact on its June quarter. Piper Jaffray analyst Gene Munster said checks at Apple retail stores shows "a very limited number of iPads available for purchase" and that Wall Street's estimates for the quarter may be getting ahead of what is reasonable. From the Munster note:

Given the international iPad launch on 5/28, and continued strong demand in the US, we expect supply constraints to last throughout the June quarter, reaching equilibrium in mid-to-late Sept. quarter. As such, while we see upside to our 1.3m iPad estimate in the June quarter and believe in the iPad as a long-term investable theme, we caution investors that we believe near-term Street numbers are getting ahead of what is reasonable given Apple's supply.

But let's also not forget a couple of important things: Apple always forecasts conservatively and regular blows away Wall Street's estimates. Likewise, Apple has a way of turning the tides with the snap of a finger - or at least with a news release that CEO Steve Jobs will deliver the opening keynote at Apple's Worldwide Developer's Conference in San Francisco on June 7.

As always, there's no clear idea of what Jobs will present that day, though it's widely expected that Jobs will introduce the next-generation iPhone. Of course, we already know what the iPhone's next OS will look like - Jobs gave that presentation back in April. And there's also been an inadvertent peek at the hardware itself, via the left-behind prototype that found a home on the pages of Gizmodo last month.

By now, there should be speculation galore about the next iPhone in the tech blogosphere - but Gizmodo pretty much squashed that. Whether Jobs and Company has an ace in the hole is unclear. Perhaps Jobs will bust out with one of his once-famous "One More Thing" presentations to close out the keynote.

Jobs, who has been in the habit lately of answering e-mails from regular Joes, told an iPhone user over the weekend that "you won't be disappointed" by the upcoming keynote and also responded to another reader who asked whether Android was surpassing the iPhone with a "not a chance."

In two weeks, we'll know for sure.

Topics: Smartphones, Apple, Hardware, iPhone, iPad, Mobility

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  • iPhone still sells 100 thousand units per day versus 65 thousand of Android

    The subject; lets see what will happen next.
    • RE: Apple roundup: Wall Street talks iPad while Jobs gears up for WWDC keynote

  • Yeah Wall Street has proven to be so wise of late....

    The problem with "guessing" what Apple's future maybe is simple nobody really knows what the companies plans are. People try to guess based on what Apple releases and appears to be going but nobody actually knows. Couple that with the simple fact that Apple as an organization could miss-step. For what ever it is Apple plans for the future it would seem there has to be many a factor that has to come to be for any company to succeed. Then there is the whole "The future is unknowable." thing. I kind of like it this way myself:P

    Pagan jim
    James Quinn
  • pressure

    "dealing with a lot of pressure from Google"

    pressure? maybe here in techtard fantasy land, but not in the real world.

    a few announcements and a mediocre update that basically closed some holes (exchange security features, update apps at once etc.) and still plays catch up with apple doesn't make a lot of pressure. most android phones can't update to froyo anyway and even for the nexus one it is an extensive step by step process only a geek could love.

    and ipad supply issues? give me a break. how about overwhelming demand. gene munster continuously blows it with ipad estimates. 1.3 million ipads sold in the june quarter? this analyst is clearly nuts. they sold one million 3 weeks ago. how about 3 million. that's an additional 2 bn in revenue, in one quarter.

    the ipad is probably the fastest selling product the world has ever seen.
    banned from zdnet
  • RE: Apple roundup: Wall Street talks iPad while Jobs gears up for WWDC keynote

    There will be one company that will be making billions of dollars from their mobile platform and that will be Apple. From the three solid products so far: iPhone, iPod Touch and iPad. They're bringing in revenue from the hardware, iTMS, App Store and in the future from iAd. Apple controls every segment of their mobile platform, from processors to iPhone OS. Based on this, I can't imagine what Apple has to fear from Google's Android based only on Android getting large market share by unit sales alone. As long as Apple's mobile platform has appeal to the high-end user, that's where the money will be. Google's Android could end up just like Symbian for Nokia. By the way share the free apps iPad.
  • RE: Apple roundup: Wall Street talks iPad while Jobs gears up for WWDC keynote

    best ipad app here.
  • RE: Apple roundup: Wall Street talks iPad while Jobs gears up for WWDC keynote

    For better or for worse, I own more Apple stock than I ought. With the stock markets collapsing, it means it is a very hard time to be heavily invested in any one company. However, I am hoping that the lead up to WWDC as well as the follow-through from beating the street's expectations, will make this a sound play. However, I am not all that hopeful, as there are too many headwinds in the markets in general.
    David Scubadiver
  • RE: Apple roundup: Wall Street talks iPad while Jobs gears up for WWDC keynote

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