“As everyone knows, Apple Computer has been on quite a tear in recent years. So how come this high-flying stock has lost some altitude? Just a few weeks ago, the much lionized maker of iPods and Macs eclipsed the $72 billion market cap of Dell. That was quite a feat since Dell’s sales dwarf Apple’s by four to one. Well, the giddiness didn’t last long. As of Feb. 8, Apple’s stock had fallen 20% from its Jan. 13 high of $85.59. Did the news that Apple had passed Dell tell investors that the stock was getting ahead of itself? That may be part of it. More likely, investors are bailing out over concerns of slower-than-expected demand for Apple’s new Intel-equipped Macintoshes. Factor in, too, the sense among Macolytes and investors that Steve Jobs’s next big product introduction may be several months away. Even lower-priced iPods, unveiled Feb. 7, failed to lift the stock north of $70,” Robin Ajello writes for BusinessWeek.
Nothing has changed. Apple’s guidance for the upcoming quarter remains as stated and as the second-best in company history. Apple remains strongly positioned for future growth. All that has changed are nebulous reports of “slower-than-expected” demand and other “concerns” – all backed up with no proof. Precisely as things were last July when “concerns” raged that iPod demand had peaked, until the actual earnings were reported which showed that Apple’s iPod shipments rose to a then-record 6.16 million. Do you really think that the “concerned” were “surprised” about that?
It’s a game. If you’re going to play, play it well.
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Analyst: Apple to unveil Intel-based iBooks, ‘real’ video iPod at special event in April – February 09, 2006
RUMOR: True Apple video iPod with 3.5-inch display, touch-screen click wheel coming soon – February 09, 2006
Analyst: Wall Street’s worries of slowing Apple Intel-based Mac demand are ‘absurd’ – February 06, 2006
Apple Mac is #1 in European education market, pushes Dell down into second place – February 03, 2006
BusinessWeek: How can Apple be worth more than Dell? – January 20, 2006
Steve Jobs emails Apple team: Michael Dell not the best prognosticator, Apple worth more than Dell – January 16, 2006
Apple now worth more than Dell – January 13, 2006