“To some analysts, Apple is so last year. The computer company was the ‘in’ thing in 2004, thanks to the megahit iPod line of music players. But some analysts are wondering whether Apple may be a one-hit wonder. The iPod’s ability to drive Apple’s stock is already fading, and unless the company finds another chart-topper, it could be yesterday’s news,” Troy Wolverton reports for TheStreet.com.
“‘It’s just a different ballgame this year than last year,’ says Shaw Wu, who covers the company for American Technology Research. Wu doesn’t have a position in Apple’s stock, and AmTech does not do investment banking. Apple continues to post strong iPod sales, of course, and is the leading vendor of digital music devices. But Wu and other analysts see signs of trouble,” Wolverton reports.
Full article here.
MacDailyNews Take: Just because some analysts see signs of trouble doesn’t mean there’s trouble. Some analysts seem as if wouldn’t be able to analyze their way out of a wet paper bag. Read the full article to find out how some are searching hard for any negatives to grab onto, even going so far as to dredge up the G4 Cube and wrongly comparing the iPod to the Mac’s history. It’s funny how wrong some people can be when they misunderstand lessons of the past and don’t clearly realize what’s really happening today.
The Macintosh platform required and still requires huge investments by developers to create compatible software. So, when faced with budgetary contraints, developers chose and still sometimes choose to go with the most popular platforms. The iPod simply plays music that can be encoded, for very little cost, in any format the “developers” (musicians and labels) desire: AAC, MP3, WMA, etc. The music doesn’t need to be rewritten, recorded, and remastered. It’s like writing Photoshop once and then pressing a button to translate it for use on Mac, Windows, Linux, etc. Any analyst who draws an analogy between Mac OS licensing and the iPod/iTunes symbiotic relationship is simply highlighting their ignorance of the vast differences between the two business situations.