Analysts now clearly see Apple Mac resurgence

“Investors were cheering another strong quarterly performance by Apple Computer on Thursday, but it was the company’s astonishing growth in Mac sales that grabbed the Street’s attention,” Katie Dean reports for TheStreet.com. “Apple’s stock jumped 5.8% in recent trading, adding $4.33 to $78.86.”

“‘On the strength of the Mac’s forthcoming ability to run Windows applications, we thought 2007 would be a breakout year for Mac sales. We were wrong,’ wrote Needham’s Charlie Wolf in a Thursday note. ‘The breakout appears to be already occurring.’ Needham makes a market in Apple,” Dean reports. “‘Never in the history of the PC has a company been better positioned to both gain share and improve profitability,’ wrote a bullish Jonathan Hoopes for ThinkEquity Partners, which makes a market in the company. ‘Investors should … understand that Apple’s software holds the key to both share gain and margin expansion.'”

Dean reports, “Helped along by the back-to-school season, Apple’s Macintosh sales grew 30% to 1.6 million units, while sales of its market-leading iPod digital music player ballooned 35% to 8.7 million units during the quarter.”

“‘IDC and Gartner just released their numbers… Apple grew at four times the industry, which implies very strong share gains,’ says Chirag Vasavada, an investment analyst with T. Rowe Price, which holds Apple shares,” Dean reports. “Compared with a Hewlett-Packard PC and a Dell PC and a Gateway PC, Apple’s PC is ‘a differentiated product in an otherwise commodity market,’ Vasavada says. And by moving to Intel chips, customers still can run Windows, making the barriers to adoption lower, Vasavada says. In addition, unlike pure hardware vendors that ship their PCs with Windows, Apple does not have to pay a percentage to Microsoft each time a unit is shipped, Vasavada says. Apple machines can run Windows, but doesn’t sell Windows-based PCs. ‘They’ve changed the competitive landscape dramatically,’ he says.”

Dean reports, “‘Clearly more and more people are adopting Apple’s operating system,’ says Jim Grossman, an equity analyst with Thrivent Asset Management, which holds Apple shares. ‘People have started to see the advantage of a tightly integrated system. They’re changing their mind and buying Macs.’

“It’s an evolution that takes time, Grossman pointed out,” Dean reports. “‘We expect them to continue this solid share gain. This strategy is coming to fruition now and I think we’re going to see more of it next quarter, and for that matter, 2007,’ Grossman says.”

Full article here.

MacDailyNews Take: By Jobs, we think they’ve got it (finally)!

“Wait until Wall Street figures this one out.”MacDailyNews Take, Wednesday, June 08, 2005

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Apple profit rises 27%, Mac up 30%, iPod up 35%; stock jumps – October 19, 2006
IDC: Apple Mac attained 5.8% of U.S. market share in Q3 06 – October 18, 2006
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Apple Financial Results Conference Call Q4-2006 Live Notes – October 18, 2006
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36 Comments

  1. Heavens above! It took ages for them to see what’s going on.

    It was so obvious to most of us here in the Mac community – i.e. non-professional but enthusiastic ‘laymen’.

    Why couldn’t the majority of these ‘professionals’ work it out?

    They get paid for, damn it!

  2. Many “experts” are not seen the most evident of why Apple is going to rule the world again, just take a look on this:
    Apple is the only computer that runs every mayos OS in the world because it has a OS that runs on Power PC and x86 processors.

    Al the apps for mac are being UNIVERSAL, that means that if IBM creates a better processor compared with Intel, they only have to make a computer with PPC cpus and the application and the OS will simply run. And, if intel get to create a mucha better processor, again, they just simply change processors again and applications will still run.

    So, Who can tell me what other company in the all universe can swap procesors and their applications will still running? in a few years, if you want the best, you will have to buy a Mac, and if you want to have the most universal machine, you will have to buy a Mac, and, if you want to buy the less expensive machine, you will have to buy a Mac, BUT, if you want to buy just a computer… then you will have to buy a Mac. “Hasta la vista.. Microsoft and DELL..”

  3. To all those who were trashing Canada:

    Yeah, you Americans can bitch about Canada as much as you want…

    Until there’s a DRAFT.

    I’d like to see how many of you will still bitch as you sneaking past the border because you don’t have the stomach to do what your beloved country tells you.

    Really. W/ this North Korea zhit going on, you guys had better be prepared for some Major Ass conscription heading your way.

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