“The torrid gains from iPod sales may soon be a thing of the past. Is there something new in the pipeline to stoke growth? As Apple Computer prepares to announce third-quarter earnings July 13, there’s a growing sense even among the company’s most avid fans that the iPod party is ending. Yes, some analysts are predicting a quarterly revenue number slightly higher than Wall Street’s consensus of $3.3 billion, but few are predicting any new blowouts,” Sarah Lacy writes for BusinessWeek.
Lacy writes, “The consensus among analysts is that iPod sales compared to the previous quarter will be flat, at roughly 5 million units. From a device that has boosted Apple’s revenues 148% since 2001, signs of a plateau are clear. Come January, 2006, Apple investors had best beware. With every passing quarter, the company that set the music world on fire with the iPod is in greater need of an encore, most analysts who cover the company believe. Computers likely won’t pick up the slack. Mac sales are expected to grow 26% in 2005, then slow to just a 6% pace in 2006, according to Goldman Sachs. And iPod’s sales growth is expected to cool from a sizzling 234% in 2005 to just 18% in 2006.”
Full article here.
MacDailyNews Take: Remember, The Street really only cares about growth. Of course, Apple has more than a decent chance of coming up with an innovative product to ignite growth; this is, after all, the company that has already changed the world three times (Apple II, Mac, iPod). Do not underestimate the Mac. The growth potential for the Mac platform is enormous.
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