CNN/Money: Apple’s earnings don’t matter due to ‘Hobbit-like small’ market share

“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

43 Comments

  1. Sounds like fear talk to me. Guess Apple will be trading at $50 a share before long. A stock split will likely occur in the next 18 months when Apple is selling 5 to 6 million iPods per quarter (remember, HP is on deck soon). Add to that, Apple will no doubt have announced at least one new bone-crushing/mind-altering consumer device by then as well.

  2. “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.”

    If you want to know what is going on, why dig through Intels records. All they are doing right now is copying AMD, like MS would copy apple.
    64 Bit X86, uhm yeah we got that (now how did AMD do that again).
    We no longer believe MHZ rating is a good indicator of how a chip performs. Uhm wait didn’t AMD do that before.
    ANd if you want to know what is coming in the furture on the PC side, look at what Apple did 1-2 years ago.

    Oy, Yes apple is such a small market that thousands of reports waste endless amount of paper, bandwidth and airwaves taking about how insignificant it is.

  3. Other than that, if you want to try and make a ‘hip’ analogy. I think that the Hobbit one is pretty stupid, because as the book and the movies show, hobbits were pretty damn important to the survival of middle earth.

    Now maybe if she used an analogy such as: “Reporter IQ level small” market share.

  4. THEY ARE MAKING MONEY!!!!!!!!!!
    What do they want, Steve Jobs firstborn??
    The biggest part of business is: Is there a Profit? Y or N
    THEY ARE MAKING MONEY!!!!!!!!!!
    Market share doesn’t make money.
    2-3 percent of the market is much larger then the 20 percent of twenty years ago. 2-3 percent is wrong amount Apple sells more then 2-3 percent of new machines, those numbers that they use are incorrect!!!

  5. rich b: Look at Apple�s last financial statement, if it was not for the money Apple made off a one-time sale of stock from another company it owned, plus other money it made of its cash supply of nearly $5 billion, Apple would have reported a loss.
    It is not making money making computers or other Apple products.
    We will see next week how Apple is doing when it reports its financials…

  6. Listen PC Lemmings! Once you get to your last pinkie toe plugging M$ security holes. You’ll be unable to post on this site to aliviate your inferiority complex.

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