Muller: 50% Gross Margin On iPhone

Apple’s gross margin for the first quarter of fiscal 2009 is expected to “well-exceed management’s guidance of 30 percent,” Financial Alchemist blogger Turley Muller commented Wednesday.

Turley, one a few financial bloggers who’s predictions closely mirrored Apple’s fourth quarter results, said the Cupertino, Calif. company is acting wisely, given the economy.

“This cushion should help Apple exceed earnings expectations even if the economy adversely affects its business,” the blogger wrote.

In a blog post entitled “Apple’s FY09 Gross Margin Expectations Too Low,” the independent analyst described Apple’s guidance as “way too conservative.”

Apple’s figure would allow the company to either match or beat earnings expectations despite an earnings downturn.

Bolstering his expectations is the fact that the iPhone now comprises 40 percent of Apple revenue. Earlier this month, Apple reported $4.5 billion from iPhone sales.

“The iPhone gross margin is likely higher than 50 percent,” according to Turley.

In other news, another analyst earlier Wednesday wrote Apple may consider a stock buy-back to boost earnings for the first quarter of fiscal 2009.

Berstein analyst Toni Sacconaghi told clients Apple could buy $20 billion in stock, creating a nine percent earnings increase. Such a buy-back is made possible with Apple’s large cash reserve and the current low stock price.

Such a move would be more valuable than either a substantial dividend or an acquisition, Sacconaghi said.

Although Apple’s stock rose 7 percent to $107 today, shares of the firm have fallen 50 percent during 2008, Bloomberg reports.