“It’s been a bit of a rocky year for large tech stocks but you wouldn’t know that from looking at Apple’s performance: shares of the iPod maker are up 27 percent so far in 2004. And that’s on top of a nearly 50 percent gain last year,” Paul La Monica and Alexandra Twin report for CNN/Money.
“Investors clearly have fallen in love with Steve Jobs and Apple once again thanks to the success of the iPod and its younger sibling, the iPod mini. Apple has so far stayed ahead of competitors such as Dell and Samsung in the portable music device market,” La Monica and Twin report. “And Apple’s iTunes online music store remains the top source for downloads even though that market is growing increasingly cluttered as well. Roxio relaunched Napster as a legal music service last year. And in late March, retail king Wal-Mart Stores unveiled an online music store that sells songs for 88 cents a download, 11 cents less than on iTunes.”
“Why [Apple’s eranings report] doesn’t matter: Apple may be the undisputed heavyweight champ of online music. But its market share in the computer business, which still accounts for nearly two-thirds of the company’s total sales, remains Hobbit-like small,” La Monica and Twin report. “Apple is clearly an innovative and cool company but in the grand scheme of things, its results are only significant for Mac junkies and/or Apple shareholders. Investors looking for clues about what’s happening in the broader tech world would be better off digging through the reports from Intel and IBM.”
Full article here.
Related MacDailyNews articles:
Apple CEO Steve Jobs says analysts should stop worrying about Mac market share and focus on profits instead – January 24, 2004
BusinessWeek: So far, Apple retail stores fail to produce market share gains for Mac – April 06, 2004