Goldman Sachs analyst David Bailey is the latest to reduce Apple (AAPL) expectations, expecting weaker demand as the economy continues to stink.
Barron’s: Bailey says checks in Asia for the December quarter found Apple faring better than other PC and smartphone vendors, but that “some nicks have started to emerge.” He says shipments of Macs, iPod Nanos and iPhones were all slightly below what was expected going into the quarter – and he says the company will likely face a tougher environment in the March and June quarters “as consumer demand takes another leg down.”
Barrons’ summary of Bailey’s note does not include specifics, either for new shipment estimates or initial expectations. Bailey thinks Apple will earn $4.54 per share this fiscal year, down from his previous estimate of $4.86 and way below the $5.27 per share Street consensus.
Bailey also thinks Apple boss Steve Jobs won’t unveil a new product category during next month’s Macworld Expo keynote, “taking away a potential catalyst for the shares and causing Apple to try to generate demand in a touch environment without the benefit of a new offering in the first part of 2009.” (We’re not sure anyone expected a radical new product next month — we sure don’t.)
Apple shares are down 4.1% to $94.21.