“It’s been a rough month for Apple bulls. Jitters over Apple’s transition to Intel processors has sliced 21% from the stock’s value since Jan. 13, with the shares closing at $67.64 on Feb. 14. The thinking was, when a major switch like this occurs, glitches inevitably follow, and some buyers will delay purchases until the kinks can be worked out,” Olga Kharif writes for BusinessWeek. Another reason for the bearishness? Some users may be waiting for Apple to introduce new computer designs in the second half, says Rob Enderle, president of tech consultancy Enderle Group.”
“Now it increasingly looks as though those concerns got overblown, and signs suggest Apple and Intel are managing the transition well. The two companies’ first computer, the iMac with Dual Core Intel processor, has already turned into a best seller,” Kharif writes. “Don Mayer, CEO of Small Dog Electronics, an Apple products retailer in Waitsfield, Vt., says the Intel-based machines outsell iMacs based on G5 chips from IBM by five to one. In fact, Intel-based iMacs are selling out quicker than the iMac G5 desktop did when it came out last October, he says. ‘As fast as they are coming in, [iMacs with Intel chips] are going out,’ Mayer says. ‘There’s significantly more demand for the iMac now that it has the Intel processor.’ And that trend has cropped up at other retailers as well. ‘I am seeing very strong demand for the Intel-based products,’ says Shaw Wu, an analyst with American Technology Research. Moreover, retailers say they are seeing lots of pent-up demand for the MacBook Pro notebook. The machine starts shipping this week, Apple said on Feb. 14.”
Kharif writes, “Apple’s transition can’t escape the bumps. But there may be fewer of them than some bears seem to think.”
Full article here.
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Analyst: Apple fundamentals remain ‘strongest in technology’ – take advantage of recent pull-back – February 15, 2006