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Could Apple, Inc. Beat Estimates in Q2?

The consensus estimate for Apple's (NASDAQ: AAPL  ) fiscal 2014 second-quarter iPhone shipments is 38 million units. But Morgan Stanley analyst Katy Huberty's AlphaWise survey estimates Apple will sell 42 million iPhones. This 4 million unit difference in estimates shouldn't be ignored -- especially since Huberty's AlphaWise survey has proved to be more accurate than consensus estimates.

Making the matter more intriguing, 4 million additional iPhone sales could push Apple into blowout territory, a place Apple definitely didn't reach in Q1. As Apple's most profitable segment, 4 million incremental iPhone sales could play a big role in Apple's bottom line, helping the company easily post two quarters of EPS growth in a row.

Fool contributor Daniel Sparks takes a closer look at Huberty's estimate, and the implications for investors in the video below.

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Read/Post Comments (12) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 20, 2014, at 7:06 PM, techanalyst1 wrote:

    If they were going to have a blowout quarter, they wouldn't need to release a cheaper phone two weeks before the end of the quarter.

    No, more likely they will miss estimates.

  • Report this Comment On March 20, 2014, at 7:08 PM, techanalyst1 wrote:

    And her estimate was made yesterday. Today, it was evident from China Mobile's CEO that they will come in light......... very light.

    So blowout? I doubt it.

  • Report this Comment On March 20, 2014, at 7:46 PM, skippywonder wrote:

    I think many people misunderstand what China Mobile said today. They indicated that in February they added 1.34 million 4G users, and "most" of them were iPhones.

    People take this to mean about a million iPhones were sold. But this misses the point. This is just the 4G portion of their sales and just the portion sold in February. Each month more cities will get the 4G roll out and so more markets will sell more iPhones.

    If you take January and February and March and consider that some (many) China Mobile sales will be 3G sales (which are 4G compatible when the local city has 4G service), you can actually see that China Mobile will sell more iPhones than the "three million" that is hastily approximated by today's info.

    Apple may or may not sell 38 million phones, but the news from China Mobile was not at all bad for Apple.

  • Report this Comment On March 20, 2014, at 7:55 PM, techanalyst1 wrote:

    Do you think Katy was correct then? 42 million?


  • Report this Comment On March 20, 2014, at 7:58 PM, techanalyst1 wrote:

    And another strange thing. China Mobil is at a 52 week low on above average volume.


  • Report this Comment On March 20, 2014, at 8:03 PM, techanalyst1 wrote:

    And apple releases a new CHEAPER phone two weeks before the end of the quarter.

    Sounds like things were selling well, huh?


  • Report this Comment On March 20, 2014, at 8:15 PM, Renee wrote:

    Let's not forget Apple also putting the iPad 4 back into production.

  • Report this Comment On March 20, 2014, at 9:06 PM, techanalyst1 wrote:

    Each time some analyst comes out with a bullish call since the stock bottomed out at 515, it rallys on piddly volume which indicates institutions aren't buying it.

    Connect the dots, You can double down with the next gap down in April.

  • Report this Comment On March 20, 2014, at 9:32 PM, larryw101 wrote:


    Give it a break shorty. You're making a fool of yourself posting on and on like an idiot. You aren't convincing anyone but yourself. But ........ if me makes you feel better, keep it up I guess.

    Shorts like you are are a breed unto themselves. Never have any unbiased comments, only ranting and raving that the stock is going to tank.

    Fools like you never learn.

  • Report this Comment On March 21, 2014, at 2:01 AM, techanalyst1 wrote:

    I'm not short.

    I'm just waiting for the gap down like the last one when I can buy it, let it ramp for at least a 12.2% gain.

    After earnings, the volatility premium tanks and the risk goes down.

    Than bam! Up the stock goes and so does my trading acct.

    Ain't doing a thing until after earnings.

    In the meantime, you can take the risk.

    And you spelled my id wrong. Get some glasses.

  • Report this Comment On March 21, 2014, at 2:02 AM, techanalyst1 wrote:

    Fools like you, hold thru earnings.

    Guess some people never learn.

  • Report this Comment On March 21, 2014, at 7:57 AM, Kahokfan67 wrote:

    Found this video very difficult to watch and listen. The choppy presentation over shadowed any content good or bad.

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Daniel Sparks

Daniel is a senior technology specialist at The Motley Fool. To get the inside scoop on his coverage of technology companies, follow him on Twitter.

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