“Shares of Apple Computer Inc. dropped as much as 6.8 percent after the company said the next version of its iMac desktop computer will be about two months late,” Jessica Brice reports for Bloomberg. “The delay means Apple won’t have a new iMac for the key back- to-school shopping season, analysts such as Joel Wagonfeld at First Albany Corp. in San Francisco said. Sales of the computer already had dropped in five straight quarters, sinking to $252 million in the company’s fiscal second quarter.”
[MacDailyNews Note: Analyze this: schools can still buy iBooks and eMacs (the “e” stands for “education,” by the way), so what exactly is the problem?
“‘Shipments in the September quarter will depend on when the new iMac is available and how much demand Apple can fulfill,’ Wagonfeld, who rates Apple shares ‘neutral,’ wrote to clients. ‘While we expect healthy demand, we think it’s unlikely Apple will be able to ship three months’ volume in one month,'” Brice reports.
“The company needs to refresh the iMac to steady results as competitors step up challenges to Apple’s best-selling iPod digital music players, analysts said. iPod shipments surged in its second quarter to 807,000 from 80,000 a year earlier. iPod in the past two quarters generated $520 million in sales, while iMac totaled $503 million. ‘The iPod could be faddish, here today and gone tomorrow, while their desktop base is stable and loyal,’ Cary Nordan, an analyst at BB&T Asset Management in Raleigh, North Carolina, said in an interview before the delay. His firm manages $14 billion and doesn’t own Apple shares. ‘It’s a strategic value that they cannot neglect or let go,'” Brice reports.
Full article here.
MacDailyNews Take: Geez, we hope Apple doesn’t let the Macintosh go or we’ll probably have to change our name. Some analysts are real geniuses, you know? Some are not.