Piper Jaffray: High Hopes for iPod

In a recent report, analysts from research firm Piper Jaffray showed optimism for Second Quarter ’08 iPod sales. They are predicting that recent sales results from First Quarter ’08 show Q2 sales to be in the 10.5-11 million range. This prediction may seem somewhat high, as previous Quarter sales results and other recent sales trends indicate a probable drop of 6% in sales, rather then the 1% increase predicted by Piper Jaffray.

“The growth prediction is based on the division of sales from the past two June quarters, which on average saw 28 percent in April, 31 percent in May, and 41 percent in June. This extrapolation may not reflect the current reality however, particularly in light of the February price cut on iPod shuffles, which helped boost unit figures.”- iPodNN Report

Piper points out that these price cuts did damage AAPL’s Average Selling Price, but also predicts those numbers to be back in the norm by Quarter’s end.

Read [iPodNN]