iPhone In China: 1 Million Shipments Could Boost Apple EPS 4 Cents

Wall Street’s reactions to Apple’s newly announced deal to sell the iPhone in China are beginning to roll out.

The first we’ve seen is by UBS’s Maynard Um.

In a note today, he says it’s difficult to project what demand will be like for the iPhone in China.

But if it boosts Apple’s iPhone shipments next fiscal year by 1 million — to near 27 million — it could add 4 cents in GAAP EPS for fiscal 2010, he estimates. (And $0.25 in non-GAAP EPS; Apple reports iPhone revenue and profit over 2 years via subscription accounting.)

Either way, not a huge gain: The Street currently projects Apple will earn $6.79 per share on $42 billion of sales in fiscal 2010, which ends next September.

Um rates Apple a BUY, but his $170, 12-month price target is right where Apple is trading today.

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