Merrill Lynch analyst Michael Hillmeyer yesterday raised his forecast for the company.

Hillmeyer expects Apple to yield $6.75 billion in sales for fiscal 2004 – he had originally expected it to accrue $6.14 billion. He also predicts a rise in earnings per share of 16 per cent for fiscal 2004 to 32 cents per share. "There's a lot of leverage in Apple's model," he told Business Week.

The magazine points to a number of initiatives from Apple that have helped improve its fortunes, including the iPod, iTunes Music Store, Power Mac G5 and success in the notebook markets.

The article comes as part of a series of special reports on Apple, covering the gamut of topics about the company.

The series of reports include articles discussing corporate adoption of Mac OS X and Xserve's as part of server infrastructures; the company's continuing innovation and influence upon the computer industry; iTunes and the Music Store; Apple's re-emergence as a digital media company; and links to older articles published by the company.