What You Need to Know Before Reacting to Apple's Earnings

iPhone sales have become the metric by which Apple is judged these days by analysts and stock pundits.  Why?  Because the iPhone now accounts for over half of Apple’s revenues.  Since April, analyst have been dropping their estimates for the number of units of iPhones sold in the upcoming Q3FY12 quarter (to be released on Tuesday, July 24) from around 27M from the previous consensus of 30-31 M.  The data is coming from both the demand side and the supply side.  Demand is speculated to falter as consumers await the upcoming iPhone 5.  Supply rumors swirl that the “Asian manufacturers” are producing fewer iPhones, as well as fewer iPads and iPods.