Analyst: Apple Will Outperform for Q2

Apple’s (NASDAQ:AAPL) second quarter results are just a couple short weeks away, and Credit Suisse analysts believe the company will beat expectations.

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Credit Suisse’s Kulbinder Garcha reiterated an Outperform rating and a price target of $600 on Apple shares Tuesday morning in a research note seen by Barron’s. He expects solid growth in iPhone sales in the second quarter, but predicts a slowdown during the third quarter. Despite the possible drag on sales and competition from Samsung (SSNLF.PK), Garcha wrote, “Apple remains well position with a privileged advantage in the compute market and will be able to maintain momentum across key product lines driven by continued innovation in hardware, software and services.”

For the second quarter, iPhone sales are expected to reach 38 million units, which represents a year-over-year increase of 9 percent. But, for the third quarter the analyst’s sales expectations are set at just 31 million units. The quarter-over-quarter slow down could be attributed to iPhone 5 sales slowing down, or possibly, customers’ anticipation for a new iPhone release.

Despite being a decline from quarter to quarter, 31 million units would still be an 18 percent increase from the year-ago quarter. For all of fiscal 2013, Apple is expected to reach 158 million iPhone sales, leaping further to 194 million units in 2014.

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Apple’s iPads are also expected to show good figures for the second quarter, with a predicted increase of 61 percent year over year, up to 19 million units, and the iPad mini could account for more than half of that. Those results would allow Apple to remain the leader of the tablet market.

Credit Suisse’s expectations for earnings per share are $44.92 for 2013 and $54.03 for 2014.

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