“Now might be a good time to put the Apple back into the investor’s cart,” Duncan Martell reports for Reuters. “Apple Computer Inc., rejuvenated by its invention of the market-leading iPod more than four years ago, on Wednesday posted a 48 percent surge in quarterly net income, fueled in large part by surging notebook computer sales.”
Martell reports, “Revenue from the sales of MacBook and MacBook pro notebooks jumped 61 percent to $1.16 billion from the year-ago quarter, a faster pace of growth than the 35 percent rise in sales of iPod digital music players to $1.50 billion. ‘It shows the importance of the notebook line in their business and the diversity of their product set,’ analyst Shannon Cross of Cross Research said of the rapid notebook growth. ‘People are looking more at the Mac story and that’s where the vast opportunity really lies.'”
“With more than 75 percent of the U.S. market for digital music players, there’s limited room for growth in iPod market share. So to keep growing Apple needs to ensure that consumers who don’t yet have a digital music player buy an iPod,” Martell reports.
“Where there is vastly more room for growth is in its ‘original’ business, selling the Macintosh computers that are known for their sleek industrial design, ease of use, and robust package of software that comes included with each computer,” Martell reports.
“Apple ended the second quarter with 4.8 percent of the U.S. notebook and desktop computer market, up from a 4.4 percent share a year ago, according to IDC figures. That’s still well below the 34 percent share that Dell Inc. commands and the 20 percent that Hewlett-Packard has chalked up,” Martell reports.
“Apple Chief Financial Officer Peter Oppenheimer cited market research firm NPD’s figures that showed Apple doubling its U.S. notebook market share as measured by units to 12 percent in June from 6 percent in January,” Martell reports. “‘We are increasingly optimistic about the potential for Mac to gain meaningful share in the back-to-school and holiday seasons while Microsoft Vista remains unavailable until January,’ wrote Merrill Lynch analyst Richard Farmer in a note to clients on Thursday.”
Full article here.
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