Pacific Crest on Apple (NASDAQ:AAPL) Before Earnings Report

Pacific Crest believes Apple's (NASDAQ:AAPL) gross margins are going to 38 percent, based on the falling DRAM prices.

Pacific Crest said they see , “an extraordinary level of demand” for the iPad and iPhone in 2011, driving the performance of the company.

Of the 49 analysts covering Apple, 44 have a Buy rating on Apple and 5 a Neutral rating.

Pacific Crest analyst Andy Hargreaves increased his EPS estimate on Apple for 2011 from $5.39 to $5.65, way above consensus at this time.

Pacific Crest maintains a "Buy" rating on Apple, which closed Friday at $348.48, gaining $2.80, or 0.81 percent.