Apple is working to reduce its inventory levels of old stock, including PowerPC Macs and iPod nanos, an analyst claims.
American Technology Research analyst Shaw Wu expects Apple to reveal "conservative" guidance for its third June quarter while it sheds old stock.
"With the Intel transition and high inventory of older iPod nanos, our sources indicate that Apple is aiming to work down inventories, particularly PowerPC Macs (iBook G4, 12-inch and 17-inch PowerBook G4s, PowerMac G5) and 2 GB/4GB Nanos in front of potential future product announcements," he said.
Despite the hiccup, Wu tells investors to: "Maintain Buy rating as we believe Apple is well-positioned to continue above market growth rates with arguably the industry's most powerful and complete stack of hardware, software, and service addressing the digital entertainment space."
He predicts Apple will yield Q3 revenues of $4.4 billion and sales of 8.5 million iPods.
Wu expects Apple revenue to reach $22.1 billion in the company's 2007 financial year, which begins in September 2006. "We believe the Intel transition will be mostly completed by then with Apple benefiting from new product momentum, including Mac OS X Leopard and new digital entertainment products," he told investors.