UBS Analyst: Retail traffic appears to be ‘extraordinary’ for Apple

“Apple Computer’s stock gained Monday, getting a lift to a new 52-week high from upbeat comments by a UBS analyst on the computer maker’s new lower priced Mac Mini computer and iPod Shuffle digital music player products. Shares of the Cupertino, Calif.-based maker of sleek tech gear climbed $3.42, or over 4 percent, to close at $84.63,” Michael Paige reports for CBS MarketWatch.

Paige reports, “Following a recent round of visits and polls of Apple’s retail stores and other retailers, UBS analyst Benjamin Reitzes said ‘Apple’s momentum continues -even into its seasonally slow second quarter and is getting set to build again throughout this calendar year with new products and retail expansion. Our checks indicate that the company is seeing a very solid reception for the new Mac Mini and iPod Shuffle, as well as strong sales of new PowerBooks,’ Reitzes said. He also continues to expect Apple will launch a new, higher-capacity version of its hugely popular iPod Mini and said he wouldn’t be surprised to see ‘a whole new generation of iPods later this calendar year.’ Retail traffic appears to be ‘extraordinary’ for Apple, with its retail outlets seeing up to a million visitors per week, the analyst said. To be sure, new products are selling out soon after shipments hit retail stores and many outlets have waiting lists for the Mac Mini. ‘While Dell and HP may be seeing consumer weakness of late, it does not appear that Apple is feeling any of this pressure,’ Reitzes asserted.”

“Reitzes raised his fiscal second-quarter earnings estimate to 45 cents a share, up from 41 cents previously, based on a 67 percent year-over-year gain in sales to $3.19 billion. For the entire year, the analyst increased his earnings expectation to $2.15 per share from an earlier estimate of $1.95 a share. He lifted his 2005 sales estimate to $13.7 billion, or a 65 percent rise from the prior year, from a prior estimate of $12.8 billion,” Paige reports.

Full article here.

MacDailyNews Take: Apple’s Q2 ’05 Quarterly Earnings Call is scheduled for April 13, 2005 and all eyes in the personal computer, consumer electronics, and the wider tech industry in general will be on Cupertino that day. 2005 is shaping up to be a seminal year for Apple and the company’s 2nd quarter results will give an important indication as to the strength of Apple’s Macintosh platform’s resurgence.

Related MacDailyNews articles:
UBS raises Apple target price from $85 to $99 on Mac mini, iPod shuffle information – February 14, 2005


  1. While this news is tantalizing….
    I would think the bigger news will be if / when Apple decides to use the Cell Processor in its lineup…

    I can see the deathknell tolling for Intel and the Evil Empire beginning !!

    Anyone got a countdown ticker running ?

  2. “Retail traffic appears to be ‘extraordinary’ for Apple, with its retail outlets seeing up to a million visitors per week, the analyst said.”

    Hell yeah, retail traffic is high. I visited the SOHO store while in NY last summer, right after the release of the 4G iPod, and the traffic was un-friggin’-believable. People weren’t just window shopping either; many had armfuls of stuff. They were queued-up 20-30 deep at each register, and NOT complaining. I’ve worked in retail before, and have never seen anything like it. I can’t imagine what traffic is like in the stores with the release of the Mac mini and the iPod shuffle; it must be CRAZY busy.

    Maybe ‘Jack A’ could give us an idea of store traffic at one of the stores in Japan…

    MaWo is ‘plan’, as in: Apple must have a plan to kick some serious retail a$$.

  3. In oder for Apple to take full advantage of the new Cell processor, they would need to re-write some of the code in OS X (maybe a complete re-write?… don’t know).

    It’ll be some time before they’ll come out with it. But I hope they’ll get to use it first! Afterall, if any company is quick and nimble enough to keep up with the changing pace of technology, it’s Apple! ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  4. I’m not sure that I believe that Cell will ever be used as a “complex” host CPU within a “real” Macintosh.

    However, I do believe that it will get used as a flexible “media engine” in almost the same way that the Moto 56K DSP could be used in an older Apple product line (I think it was the Centris AV models).

    Cell appears to be almost perfectly placed to take certain linear media tasks from the main CPU: a simple example would be ripping CDs in iTunes and could lead to “lossy” AAC encoding happening at rates which get close to the physical maximum of the CD drive, perhaps 35x to 40x.

    Another example would be both the encoding of multiple streams of high-def digital video: imagine being able to encode either the live or recorded output of several 1080p cameras whilst your PowerMac just chugs along.

    Or how about running several real-time audio effects on tracks within a Logic performance.

    In the scientific community, Cell may also be able to run certain simulation type tasks for computational fluid dynamics, seismology, natural resources amongst others.

  5. I live i Cincinnati and I could not believe the traffic in the AppleStore here after Christmas. Having been a manager in retail we were always dead in January and February, hoever Apple this weekend was packed and most people were buying. I swear it was like Christmas had not ended. The lines for the register were to the door and it is February! Congrats Apple that is very nice turn around!

  6. I was hanging around the local Apple store in Oregon (at Washington Square). There were lots of people in the store. I was impressed….at first.
    Then I started checking out the people.
    Most seemed like people visiting a Ferrari dealer. Wow! Cool! Neat. Look at the price sticker! Gulp! Drift quickly out the door with maybe we drive to Fryes in Wilsonvilled and check out the peecees. (They have Apples there, too.)
    Lots of people talking to Apple people.
    Lots of teenies playing with the laptops chatting with each other via iSight.
    Lots of traffic.
    But in the 30 minutes I was there (yes, I was bored and had nothing better to do as I was waiting for my wife to leave Nordstroms so we could go to the food court to get the 3-course Happy Panda meal) I never saw one person buy one thing.
    Not one purchase.
    Then as we spent another hour or so in the mall, I started looking for Apple shopping bags. I saw Sears, Meir & Frank, Penny, Mother Goose, etc, etc, but never saw a single Apple shopping bag. Nor someone walking out with an Apple computer box.
    Guess I was there at the wrong time.
    Lots of traffic for sure at the Apple store, but I didn´t see any sales.
    And I noticed how the Apple people were curiously trying to direct people away from the Apple mini mac to the iMac or higher priced product.

  7. The Apple retail stores completely suck. They can’t even compare to CompUSA or the computer section of Best Buy. I was in the Apple store here in Bumfuck Shitsville with my Mom because she was thinking about replacing her eMachine (despite my desperate pleading not to) and noticed that they don’t even have the Geek Squad® or any top-notch Napster® products. I couldn’t even find any PC software! Totally lame.

    Well, guys, gotta go. The school bus is waiting outside.

  8. fandango, I was in the Apple Store Ginza a few weeks ago and it was pretty crowded but then it is crowded everywhere in Tokyo ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    I am not sure if they are having quite the traffic over here that they are having in some U.S. store but it is steady and sales seem to have been good. There was only one mini on display in the whole store (right in the middle of the first floor and fastened down so you could not pick it up ” width=”19″ height=”19″ alt=”downer” style=”border:0;” /> )

    They are still selling out of shuffles within the day every day that they get a shipment in, as far as I know. At least I have been by twice and my Mother in law has been by twice and they have been sold out every time so far so no shuffle for me yet.

    Traditionally Japan follows US trends with a bit of a delay so I think this year may end up being the equivalent of the last year in the US as far as overall sales go. You can never be sure though since Japanese also tend to do things all together so if they reach the catalyst point they could end up surpassing the US in a flash. A really big factor was Tokyo University switching all to Macs last spring. That carries a lot of weight in Japan.

    I am probably gonna hit the Apple store later this week and will let you know how it is.

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