Analyst: Diminished IPad Sales Not Bad For Apple Inc.

Modestly higher demand for the iPhone and a shift in product mix stemming from diminished iPad sales spurred an analyst to forecast additional upside in the company's share price Tuesday.As iPhones increase as a percentage of Apple's product sales mix, "we expect margins to perform favorably," Benjamin J. Bollin of Cleveland Research said.The iPhone accounts for more than 60 percent of Apple's revenue but more than 80 percent of its profits.IPad demand is likely to remain weak into 2016, while Bollin said his discussions with suppliers and service providers suggest modestly higher demand for Apple's iPhones. The potential for Apple Watch sales and revenue from application sales also suggest "margin tailwinds," Bollin said of the relatively profitable product lines.But Bollin maintained a Neutral rating on Apple Tuesday, meaning he expects the shares will perform in line with market averages.Apple, trading recently at $130.08 off $0.11 cents, is up about 18 percent in the year to date, versus about 7 percent for the Nasdaq composite index.Bolin predicts Apple's revenue for its June quarter will come in 5.6 percent ahead of the consensus, which currently calls for $48.2 billion.Bollin, who maintains a $170 price target on Apple, didn't comment on Carl C. Icahn's open letter to the company Monday, which suggested Apple is worth $240 a share.http://www.shareholderssquaretable.com/carl-icahn-issues-open-letter-to-tim-cook/Icahn said the company will launch a television set in 2016, but The Wall Street Journal reported late Monday that Apple tabled the project more than a year ago.http://www.wsj.com/articles/behind-apples-move-to-shelve-tv-plans-1431992617Bollin is forecasting iPhone unit sales of 48 million, versus the average estimate of 45 million units.As for iPads and Apple Watch, Bollin is roughly in line with the consensus at 11 million and 6 million units respectively, in the current quarter.Analysts on average maintain an Overweight rating and $146.49 target on Apple according to FactSet.