Wall Street focused on Macs over iPods as Apple releases third quarter results today

“A small, handheld music player was responsible for vaulting one of the computer industry’s most storied companies back into prominence. But it’s the original Mac that has Apple Computer investors looking forward to Wednesday’s third-quarter earnings call,” Tom Krazit reports for CNET News.

Krazit reports, “New designs, new features and snarky new commercials have been the highlight of Apple’s renewed focus on pushing its personal computers.”

MacDailyNews Take: The ads only seem “snarky” if you’re stuck looking at an OS-limited Dell, wishing you had a Mac. Or if you work for CNET. Same difference, actually.

Krazit continues, “Analysts and investors are eagerly awaiting word Wednesday from company executives as to whether the new products and marketing strategies have paid off in terms of increased Mac shipments. The average estimate compiled by Thomson First Call points to $4.4 billion in revenue, and earnings per share of 44 cents, slightly ahead of the company’s own guidance issued in April, following its second-quarter earnings announcement.”

“Apple chose to focus on that other franchise, the Mac, during the first part of this year as it weaned itself off PowerPC chips in favor of Intel’s new processors. With that transition nearly complete, analysts will be closely watching Apple’s guidance for the second half of the year for signs of market share improvements and new directions for the iPod,” Krazit reports.

“Even modest share gains on Apple’s part will translate into a healthy addition to the company’s financial results. At Apple’s shareholder meeting in April, Chief Financial Officer Peter Oppenheimer said each percentage point of market share gained would translate into about $2 billion in revenue,” Krazit reports. “However, it’s still early in the transition to Intel’s chips to make a completely informed prediction about Apple’s market share, said Shaw Wu, an analyst with American Technology Research. The new Intel-based MacBook, one of Apple’s more popular products, didn’t start shipping until the middle of May and likely took a little longer to become available in large volumes, he said.”

Much more in the full article here.

Related article:
Apple FY 06 Third Quarter Results Conference Call this Wednesday – July 18, 2006


  1. “Snarky ads? Smug’s the word, I’d say. Ugh.”

    Hmmm … that’s funny. For the target audience at which they’re aimed — people who haven’t bought a computer or are sick of Windows — I’d call them: “effective”.

  2. The only opinion about the ads that matters is that of people considering a computer purchase. If they like them and respond by buying a Mac they aren’t anything but brilliant. If they don’t then they are clearly a misfire.

    Let’s look at the numbers NEXT quarter to see how they might have helped the bottom line. My guess? They probably went a long way to communicate a couple of central ideas. 1. Macs can now run Windows. 2. Macs don’t get viruses.

    While these are, to a degree, conflicting statements since Macs running Windows CAN get viruses….the target audience is likely sophisticated enough to understand how the two systems can run side by side efficiently enough.

  3. If they manage to ship 1.3 M that will be way above expectations.

    Hopefully the market has already got used to the idea that 8-8.5M iPods will have been sold in the quarter. Otherwise, the stock will tank.

    I’m wondering what will happen if the SEC decides Apple will be made an example of in the stock option fiasco. The impact of the stock value could be significant if the market decides Apple’s shine has been tarnished. Hopefully Jobs and Co have enough cash to repay the difference plus the cost of any fines.

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