Writing for CBS Marketwatch, Steve Gelsi reports that investment firm J.P. Morgan has lowered its second quarter earnings per share estimate for Apple. The news comes in an article entitled JPM lowers Apple target.
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Gelsi said that J.P. Morgan market analyst Dan Kunstler has lowered the earnings estimate for Apple to 6 cents per share, down from 11 cents per share. The analyst expects Apple to report quarterly revenues of US$1.35 billion, as opposed to $1.45 billion.
Kunstler attributes the revised earnings estimates to Apple’s slow ramp up in production of the new flat panel iMac and limited profitability. The production and availability of the new iMacs was touched on by Apple CEO Steve Jobs’ keynote address to attendees of this week’s Macworld Expo in Tokyo, Japan.
Jobs claimed that Apple has shipped 125,000 iMacs since its introduction in January and that the company is now shipping 5,000 units a day to help meet heavy consumer demand. Apple also announced that the new iMacs are now being sold for $100 more than they were yesterday, to help cover increased costs in memory and flat panel LCD monitor production.