“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.