Bear Stearns Equity Research analyst Andrew Neff expects Apple to respond to Microsoft’s “clear challenge” (Zune) with new innovations in four areas: wireless, content, storage and platforms.
“Apple needs to be leading edge in these areas,” he wrote in a recent report to clients obtained by MacDailyNews. “The competition is not new. There are plenty of music players and music downloading services, but the challenge for any tech company is to obsolete your products or someone else will.”
Bear Stearns rates Apple shares “outperform” with a year-end price target of $88.
MacDailyNews Take: Apple has to keep innovating in order to lead. Brilliant. Thanks for the insight, Andy.
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Apple is a moving target. Microsoft is aiming to be where Apple was. This is why Apple must guard its intellectual property viciously.
What ever would we do without them, the analysts?
MDN should stop posting ALL stories unless it’s a story about a new Mac model thats released.
Then when there are 4 or 5 new postings a year all people will be complaining about how they never update this site.
For those of you who think that MDN is putting too much non-Mac related content here the choice is simple. DONT ******* READ IT.
The analysts have to say SOMETHING. So they state the obvious, so what. What do you expect them to say, something obscure that isn’t relevant?
Apple needs to innovate on “platforms”? Right now, Apple’s solution (iPod+iTunes) is the only one that works for Windows and Mac. Does this mean he expects that they expand to Linux? I doubt it.
However, he could be referring to the iPod as a platform, but I doubt Apple will move in that direction either. More features didn’t help PSP take over the MP3 market, and Apple’s ease of use could suffer.
OK, Here is my question.
Why do analysts all think that if you are selling a product, it will not work unless EVERYTHING in existence is attached to your unit.
Hard drive
flash
bluetooth
wireless
usb
phone
mirror
voice recorder
fm radio
am radio
vhs player
dvd player
tv recorder
tooth brush holder
tooth paste dispenser
dental floss holder
OK, well you get my drift. People with no clue spend their time analysing. ???
What a waste of time. lol
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Later,
N
Apple will fail. Microsoft and the PC vendors will start bundling all PC with Zune and drive down the price. and there goes the years of Apple/iPod/iTunes dominance.
Enjoy the last days of iPods.
Microsoft appears to be putting on its Achilles sandals to take on the Apple tortoise of innovation. Maybe Zune should be renamed ‘Zeno’ as in Zeno’s paradoxes.
Well, we know the outcome of that ancient race. The tortiose was never overtaken.
How can Apple be “challenged” by a product that does not exist? Let’s wait and see (1) what this “iPod killer” actually does (2) and compare it to what Apple has when it’s actually released. If history repeats, the MS product will be available at about the time Apple releases the 8G iPod, in 2008.
“four areas: wireless, content, storage and platforms”
Wireless – maybe – I’m not needing it
Content? Already got it already – ever hear of iTunes?
Storage? WTF!
Platforms? You got to be kidding me.
Here’s my impersonation of analyst…
“Ok Apple, so Microsoft’s got this really “new” stuff coming out. So what we need you to do is do something like that’s even, you know…. NEWER. Like a hard drive thingy or e-ray vision or something like that. Something that these kids will go WOW! – you know like the hoola-hoop!!!!”
“There are plenty of music players and music downloading services, but the challenge for any tech company is to obsolete your products or someone else will.”
Hello? How long has this guy been covering Apple? Has he already forgotten that Apple killed off its best selling iPod (the iPod mini) with absolutely no warning. Apple has no problem obsoleting its own products when it has a new and innovative product. The nano replaced the mini, and I wouldn’t be surprised to see a new format replace the full-sized iPod or slot in above it in the lineup soon.
Ron:
There is no love lost between PC hardware manufacturers and Microsoft. If you think that Dell, HP, Gateway, Toshiba, et al are thrilled that there’s no Windows Vista to ship on their computers this fall, think again.
PC box makers are looking for a way out from under the Microsoft thumb as much as anyone else. If you think they will bundle a Microsoft hardware device with their PCs, thus furthering the bondage, you are sadly mistaken.
Someone said it best on another thread: Time for your meds, Ron. Time for your meds, Ron. Time for your meds. Ron.
Apple needs to “respond with innovation?” Give me a break. Apple will continue to innovate in this area whether or not MS ever gets a clue.
Does anyone really think MS is going to come up with a wireless solution for sharing/downloading files that’s elegant (or at least user-friendly), doesn’t rip us off (to appease the record companies) and the average Joe can set up without an IT department?
This is an area where MS is totally UNABLE to leverage it’s OS monopoly and it shows. MS became a monopoly because it sold big business a bill of goods and Apple/Amiga/Atari totally dropped the ball. The iPod/iTunes ecosystem does not and will never depend on big business/IT departments making the “buy decisions.”
Hey Ron, get the “bleep” out of here! No body likes annoying kids; how old are you anyway? 8?
iPod innovations are not a response
to MS’ “challenge”. That’s a silly statement.