UBS: ‘key risk’ on Apple Computer ‘remains IBM’s ability to produce enough G5 chips’

“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


  1. Sounds like Apple made things worse for itself by rushing the iMac to the G5 processor. An iMac with dual G4 processors and a new graphics chip should have been announced in June. Instead, Apple is left with a big hole where the iMac used to be. I hope the same mistake will not be made again when the time comes to update the PowerBooks, iBooks and the eMac.

    I do not blame only Apple for this situation. IBM should have known better than to rush the G5 chip to the 90 nm process. The technology to make 90 nm CPUs is not there yet and until it is, 140 nm chips is what IBM should be mass-producing. It is not like 140 nm chips were that much slower to the 90 nm versions; the only 90 nm G5 that is faster is the 2.5 and those are scarce right now.

  2. This is a bit of a “D’oh!” situation isn’t it.

    Oh well, we’ll have to ride it out. Scary thing is, let’s say they do get things rolling really well in the next few months – the speeds should go up and up… so, the problem is – When does one buy a G5? When they’re still at 2Ghz like now or wait 6 months and hopefully get a 3Ghz+ machine?

    Hmmm. The eternal question.

    ps Next – chip factories cost big $$$$$ (or lots of little ones) It’s not what Apple does best, and probably doesn’t need to be. Besides, this stuff requires huge R&D – IBM spends mega amounts of money on R&D to ensure they’re ahead (most of the time ” width=”19″ height=”19″ alt=”wink” style=”border:0;” /> Don’t panic, it’ll all be ok soon. Intel are suffering too, and will continue to suffer long after IBM have 90nm sorted out coz they’re chips are basically “end of life”.

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