Apple’s Second Quarter Expected To Show High Profits
04.25.07 - 10:44am
Apple is expected to show high fiscal second quarter profits where usually they would see a downtrend in profits due to the
post holiday sales slump.
Analyst estimate Apple’s net income rose 43 percent to $586.3 million due to a price cut in the memory chips and display screens Apple uses. This reduction in component cost allowed for Apple’s profit to out pace its sales growth. The price of the flash-memory chips were reduced almost in half falling as much as 45 percent.
“Since component prices have come down more than anticipated, there could be a real nice pickup on the bottom line,” said Chuck Jones, a San Francisco-based analyst for Atlantic Trust which manages $17 billion including Apple shares.
