“Apple Inc. (NASDAQ: AAPL) reports second quarter earnings Tuesday. Estimates have been climbing over the past few days, finishing at an average estimate of $2.45 per share today, far above the $1.75 per share that was predicted three months ago. At nearly 17% of PowerShares QQQ (NASDAQ: QQQQ), Apple will play a big role in determining whether this ETF can climb to a new 52-week high. Shares of QQQQ, which closed at $50.13 on Thursday of last week, a day before the Goldman Sachs (GS) news shook the market, need to gain 1.3% to retake that level as of Monday’s close,” Don Dion Reports From The Street.

Dion goes on to say, “Whether Apple (NADAQ: AAPL) generates a positive move in its share price and a concurrent move in the broader technology space will have a lot to do with sales of its iPad. Although the device will not factor into this quarterly earnings report, investors are looking ahead to next quarter and beyond. Apple announced a delay in shipments for the 3G iPad due to strong demand, with new pre-orders delayed a week for the device. An international version of the iPad, which was supposed to launch on May 10, was also delayed due to strong domestic demand. Annual sales estimates range from more than 2 million devices all the way up to 7 million. The mix of sales between WiFi only and 3G will be important because the 3G models figure to boost Apple’s margins on the product because it add only a small cost to Apple while providing a large price increase.”

“Still, for the moment, the iPad is a small part of Apple’s business. Even if sales hit optimistic target of 7 million by year-end, that’s less than the 8.7 million iPhones the company sold in the first quarter. Earnings in the second quarter ended March 31 will depend heavily on sales of the iPhone and applications for the device. Since recurring revenue from apps sales relies on sales of the iPhone, sales numbers will also be important for future earnings. A strong report from Apple would be welcome news, but the action in Apple’s share price will be more important for holders of QQQQ, and the behavior of Apple stock, in turn, will be determined in large part by what investors have already priced into Apple shares. With optimism about the iPad running high, it may take a very positive surprise to move the broader technology market higher, as recent positive reports from other companies have failed to lift the sector,” Dion Reports.

Well it looks like the PowerShares QQQ (NASDAQ: AAPL) will win big as Apple Inc. (NASDAQ: AAPL) smashes estimates.  See the details on the report below:

“Apple® (NASDAQ: AAPL) today announced financial results for its fiscal 2010 second quarter ended March 27, 2010. The Company posted revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share. These results compare to revenue of $9.08 billion and net quarterly profit of $1.62 billion, or $1.79 per diluted share, in the year-ago quarter. Gross margin was 41.7 percent, up from 39.9 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter’s revenue,” PRNewswire Reports.

“Apple sold 2.94 million Macintosh® computers during the quarter, representing a 33 percent unit increase over the year-ago quarter. The Company sold 8.75 million iPhones in the quarter, representing 131 percent unit growth over the year-ago quarter. Apple sold 10.89 million iPods during the quarter, representing a one percent unit decline from the year-ago quarter,” PRNewswire Reports.

“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent,” said Steve Jobs, Apple’s CEO. “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”

“Looking ahead to the third fiscal quarter of 2010, we expect revenue in the range of about $13.0 billion to $13.4 billion and we expect diluted earnings per share in the range of about $2.28 to $2.39,” said Peter Oppenheimer, Apple’s CFO.

Here are some more details we put together on the PowerShares QQQ ETF (NASDAQ: QQQQ) below for your viewing:

PowerShares QQQ™, formerly known as “QQQ” or the “NASDAQ- 100 Index Tracking Stock®”, is an exchange-traded fund based on the Nasdaq-100 Index®. The Fund will, under most circumstances, consists of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The portfolio is rebalanced quarterly and reconstituted annually.

Fund Holdings subject to change   Apple Inc. (AAPL)   16.62%   Microsoft Corp. (MSFT)   5.09%   QUALCOMM Inc. (QCOM)   4.71%   Google Inc. (GOOG)   4.42%   Cisco Systems Inc. (CSCO)   2.99%   As of 4/20/2010

Oracle Corp. (ORCL)   2.94%   Intel Corp. (INTC)   2.51%   Teva Pharmaceutical Industries Ltd. (TEVA)   2.46%   Amazon.com Inc. (AMZN)   2.29%   Research In Motion Ltd. (RIMM)   2.16%

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