Munster’s Scary iPhone Forecast

Gene Munster has had quite a run of late.  Bullish, and rightfully so, he was Wall Street’s poster child for everything Apple. Of course, a world of blogs and enthusiasts makes this situation unique, but Gene was the go-to-guy.

But his enthusiasm for the iPhone apparently got the better of him. In retrospect, wasn’t it a bit silly that everyone was hung up on two days of iPhone revenue? It was myopia, in its most extreme form. Did Apple miss iPhone sales estimates for two days, or is it absurd we even try to quantify it?

“People get emotionally involved in the product and start thinking it’s going to be a bigger number than it actually is,” said Gene Munster, an analyst at Piper Jaffray. Mr. Munster initially projected sales of 200,000 over the first two days. But after he and colleagues measured sales rates at flagship Apple Stores in Minneapolis, New York, and San Francisco, he raised his estimate for first-weekend sales to 500,000 — with 355,000 of those expected in the two-day period that Apple would be reporting as part of its quarterly results.

Wall Street analysts are not prone to understatement...but it does happen.

“People realized it was a great phone,” he said. “Based on that, expectations kind of ran wild.”

Wild indeed. But Gene is still the ax.

Analysts ponder IPhone sales forecasts
WSJ/The Numbers Guy

Crackpot Analysts Way Off on iPhone Sales
Information Week
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The content contained represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned

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