Credit Suisse First Boston: ‘several years of flawless execution required for Apple to return to pea

“Apple Comuter stock was lower as Credit Suisse First Boston detected a “worry” that the computer maker’s fiscal first-quarter PowerMac sales of 206,000 units were below the fourth-quarter level of 221,000 units,” Forbes reports.

“CSFB also noted that some positive aspects of the company’s first-quarter earnings report were already known to investors, as Apple had preannounced ‘blowout’ iPod quarterly unit sales of 733,000 that were well above CSFB’s estimate of 650,000. ‘The PowerMac and cousin iMac desktops account for a third of the company’s revenue, versus 13% for the iPod,’ CSFB said,” Forbes reports.

“‘The battle for the household will become fierce, and Apple needs to maintain high investment rates in research and development, marketing and store rollouts to stay visible,’ CSFB said. ‘Because of this, we believe it will take several years of flawless execution for Apple to return to its historical peak profit margins,'” Forbes reports.

Full article here.

16 Comments

  1. Years of flawless execution to get to historical peak profit margins? Hmmm… seems like we’re really avoiding the fact that the company is doing exceedingly well right now. So what if they’re off from historical highs? It doesn’t negate the fact they’ve been one of the most successful companies in their market of late, and that they’ve got a very solid future ahead of them. There are very few grey areas with Apple right now.

  2. Consider that AAPL shares are priced below their historical average, let alone, “peak,” and the valuation based on the company’s performance—the good and the bad—seems extremely fair.

    This character was just looking for something to complain about.

  3. It’s already been mentioned elsewhere that the reason the 4th quarter sales were so high was because they started shipping PM G5’s in the last month of the 4th quarter.

    The pent up demand for those machines contributed to an initial burst of sales followed by a steady stream. It’ll be hard to predict what’s going to happen this quarter with the XServes and potential upgrades to the PM G5s. I suppose there are a lot of people like me who feel that their current machines are good enough to take them to next summer when speeds in excess of 3 Ghz should be available.

  4. “Apple needs to maintain high investment rates in research and development, marketing and store rollouts to stay visible�”

    How do you stay visible when you don’t advertise? I cannot sit through an evening of TV viewing without having to face several ads from Dull Computer, yet nary an Apple ad is to be seen.

  5. “Years of flawless execution to get to historical peak profit margins?”

    Too bad they don’t demand the same from Microsoft, Dell and the other mediocrity machines. Perhaps if they did, Windows and the entire Wintel world wouldn’t be so pathetically mundane.

  6. Yeah the opinion column is out of date because they lost some stuff in the recent server shutdown mishap. The webmaster said they were working to recover as much as they could, I believe.

  7. Sure if Apple keeps performing like this in a few yours they will reach peak, and and be back up at $68/share again. But then again for that to truly happen we need another dot com explosion, or Apple might try to pay dividends to stir up interest in their stock.

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