“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
Related articles:
Analyst: Apple formula working to lead Mac resurgence, Apple’s growth rate should accelerate in ‘07 – October 19, 2006
BW: Record-breaking quarterly Mac sales put Apple into the running for a top computer-maker spot – October 19, 2006
Jim Cramer: Apple’s quarter showed how poorly the also-rans are faring – October 19, 2006
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
Gartner: Apple Mac grabbed 6.1% of U.S. market share in Q3 06 – October 18, 2006
Apple Financial Results Conference Call Q4-2006 Live Notes – October 18, 2006
Apple shares rocket 6.5% in after-hours trading on stellar earnings report – October 18, 2006
Apple Q4 earnings results: $546M net profit on $4.84B revenue, sold 1.61M Macs, 8.729M iPods – October 18, 2006
Gotta love their foresight.
Great MDN take, historic prediction. Yes, it is about time, and the recent downward dip to the ’50’s is – in hindsight – very embarrassing for the street. But I made out very well, so whatever.
Wheeee!
Microsoft…the Enron of reliable software.
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!
“Apple should license the OS X to dell and quit hardware division”?
I Guess some people can not resist that Apple is going to take over the world.
“…. I think we’re going to see more of it next quarter…”
Well, DUH!!!
I SOOOOO want that hug.
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..”
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.
@Johann:
Go suck an egg you wushy washy idiot inferior Canadian.
You suck, WE ROCK.
memo to self: go away
I think, long term, if done right, the idea of an operating system that can run on a multitude of chips is amazing. Instead of having Windows Mobile, Windoes CE, Windows XP you could run OS X. Or, if a certain chip performs better for a certain application, say, oh I don’t know, an iPhone, or iPad, porting an application to it would be a checkbox away.
It’s good to be Apple right now. Not having to deal with Legacy software like Microsoft, and not being tied to any particular chip. Amazing
The only problem with adding Windows to your Mac (should you decide to do so) is that most don’t have the necessary licence. This will mean buying one at Microsoft’s ridiculous retail prices – even higher if you decide to use Parallels.
The OEM version of Windows on the PC you might already have is not transferrable. It’s very unlikely Apple will OEM Windows.
In the end, Microsoft will only encourage people to steal Windows – not just because of the draconian licensing and product activations and what not, but because of the unrealisitic pricing scheme and penalties for using a Mac.
Welcome to the party, pal!
Hmm, and I thought Canada was just the wasteland between the northern border of the US and the arctic circle.
@Johann (the real Johann;):
Duh, maybe there’s more than one of us named JOHANN.
@ Jeff:
You, my friend, are too cool. Keep your country bright, dude.
PS DRAFT COMING YOUR WAY, AMERICANS!
We have enough space up here for all you dodgers. Then we’ll see you call it a wasteland.
Think about it: you might be going to war, and a pretty brutal one at that.
I find it highly ironic (and more than little pathetic) that the biggest boosters of the draft are so-called anti-war types.
In other words, isn’t it strange that the people who want to force (with barely restrained glee) hundreds of thousands of people into military service are the ones who supposedly claim that peace is the better way?
Nonetheless, this non-logic seems to escape them.
Then again, Stalinists loved to throw tens of millions of people into Siberian slave labor death camps because certain people need to be taught a lesson in ideology.
Putting things in perspective, I looked up the latest stock quotes. Here is an idea of how big Apple is vs some of it’s tech contemporaries.
AAPL (Apple Computer)
Market Cap $67,479,880,680
DELL (Dell, Inc.)
Market Cap $52,496,999,540
HPQ (Hewlett-Packard)
Market Cap $108,435,347,220
SNE (Sony American Depository Receipts)
Market Cap $39,992,813,250
ADBE (Adobe Syatems, Inc.)
Market Cap $22,252,057,180
IBM (International Business Machines Corporation)
Market Cap $136,919,854,830
TWX (Time-Warner)
Market Cap $78,135,013,240
CMCSA (Comcast)
Market Cap $51,907,772,000
T (AT&T-former SBC)
Market Cap $131,284,777,000
VZ (Verizon Communications, Inc.)
Market Cap $107,861,482,830
MSFT (Microsoft Corporation)
Market Cap $282,051,073,680
Good Job Apple now get more developers in your corner.
I think I finally understand what was going on in the “rob glaser” thread yesterday and the day before.
Johann is the younger brother that rides the short bus. mike k. is the older brother that defends his younger bro when he thinks he needs to be defended online.
Having said that… one more thing.
Anybody besides me miss Ampar?
The cluebat of reality made converts out of a few analysts. It will have to thwack the rest even harder to get them out of their denial. But I don’t really care about them. Apple is winning and my AAPL future looks bright.
For those of us who put our money into AAPL before the herd figures/figured it out, let’s enjoy our bounty as we laugh our way to the bank.
As of close today:
AAPL market cap – $67.18 bn
DELL market cap – $52.52 bn
Oh I’m laughing alright. =)
-c
MW: “toward” (bankruptcy)
That’s great – Jim – the independent voter, making fun of retards. Yer kewl, man. That’s tolerance for ya.
How To Dodge the Draft Without Expatriating:
“I’m gay.”
-c
MW: “inside” (ball 1)
That’s Apple Computer, Inc., to you bubba, the computer giant (I love saying that so, so much).