“UBS overnight said the ‘key risk’ on Apple Computer (AAPL) in the near-term ‘remains IBM’s ability to produce enough G5 chips.’ UBS said it believes IBM (IBM) is devoting more resources to the ‘Apple issue’ on almost a weekly basis with some success in yields of late, but still facing production problems. ‘As a result, Powermac shipments should face yield issues into fiscal first quarter 2005 and a new iMac to be launched later this month to strong demand, should be met with shortages,'” Emily Church reports for CBSMarketWatch.
However, overall UBS expects “Apple could still deliver significant sequential improvement into calendar fourth quarter 2004, with its own product cycles (iPod & iMac, etc.) that should be able to insulate it somewhat from macro-economic issues.”
Full article here.
Related MacDailyNews article:
‘Worse than anticipated’ G5 chip delay may impact Apple earnings – August 16, 2004