“Investors in Apple got a late Christmas present when the company’s shares soared well past the $80 mark in January. But since then, Apple’s shares have dropped 23 percent from their January high of nearly $86 during the week of the company’s annual Macworld event. That’s when Apple unveiled its first Macs to contain Intel chips, several months ahead of schedule,” Amanda Cantrell writes for CNNMoney. “Also that week, Jobs pre-announced better-than-expected revenue for the December quarter and revealed that Apple had sold 14 million iPods, several million more than Wall Street analysts had expected and a three-fold increase over the previous year.”
“So why have the shares dropped? Analysts and investors say part of it is simply profit taking, with some investors using the January highs as a chance to cash in. The January announcements helped the stock hit a record high,” Amanda Cantrell writes for CNNMoney. “But they also blame the share price decline on the fact that Apple is in the midst of a ‘transitional quarter,’ selling its first Intel-based Macs and in the process of shifting its entire Mac line to include Intel chips… Another factor that may have contributed to the decline in share price is the fact that March is traditionally a seasonally slower quarter for iPod and Mac sales. The shares experienced a further sell-off Wednesday when analyst Gene Munster of Piper Jaffray released a research note estimating that Apple will sell roughly nine million iPods in the current quarter, shy of many Wall Street analysts’ expectations of 9.5 million… While analysts and investors say they aren’t concerned about Apple’s long-term prospects, the near term is unclear.”
Full article here.
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Piper Jaffray: Apple on track to meet or slightly exceed iPod unit expectations – March 13, 2006
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Citigroup ups Apple to ‘buy,’ expects Intel transisiton to be complete in all Macs by August – March 13, 2006