Will Q2 Be Better For Consumer Electronics Or Just Apple (AAPL)

Apple (AAPL) is up today, but so is almost everything else. The company is getting special attention from investors because Credit Suisse  upgraded its view of the firm’s prospects for the second quarter.

Apparently, demand for iPhones and Macs is better than expected.

According to the AP, “In a client note, Credit Suisse analyst Bill Shope increased his target price to $133 from $120.” What is not clear is whether the potential improvement in Apple’s business is due to an overall upturn in PC and smartphone purchases or if the better results are restricted to Apple.

Based on recent research both global PCs and smart phone sales are being undermined by the recession. Most analysts do not expect this to improve until last this year or early in 2010.

Any improvement in Apple’s fortunes is already priced into the shares. In other words, the stock has run further than those of its competitors. Over the last three months, Apple has risen 40% compared to 2% for Dell and a loss of 5% for HP. Even if Q2 is going to be particularly strong, Apple is overpriced.

Douglas A. McIntyre