“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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@johann
not making fun of “retards” johann, just making an observation that your posts are retarded. but hey… if the shoe fits…
Johann – For what reason should anyone be tolerant of you? What have you done but show yourself intolerant in every post you’ve made about the USA. Even your first post on this thread accuses people of saying bad things about Canada when not had yet occured. If you would actually take the time to READ the posts on this thread, you will see that there were no disparaging things said about our neighbor to the north until you brought it up.
Jim didn’t make fun of handicapped children, he made fun of you doofus. Get a clue please.
HEY! I miss ampar. That dude was freeking hilarious!
(cue music from the end of the movie “Rudy”)
ampar, ampar, Ampar, Ampar, AMpar, AMpar, AMPAR, AMPAR!!!
“I think I’m finally beginning to understand what the student body is chanting. It’s for a walk on football player named Ampar”
MacDailyNews Take: By Jobs, we think they’ve got it (finally)!
The worlds eyes are opening…
Anyone lelse go and look that May 2005 MDN take?
Laughable to see the posts then from “Mac & PC Guy” and “Reality Check”… all their wasted attempts of subtly underming Mac has come to…nought.
Bad luck guys (and don’t say we didn’t tell you).
@Jim – the independent voter
Hey Jim, what about the kids that really DO sit at the back of the bus? You’re insulting all of them more than me. Freakin’ intolerant Yank.
As far as Ampar is concerned, I’m sure he’s sick of all your nationalist, isolationist, fascist tripe and went to a better site.
And another thing:
A draft IS coming to your country. Maybe sooner than later. Some of you are gonna be forced BY LAW to kill North Koreans. Some of you undoubtedly will have no problem with that, but some of you will. Don’t forget: the border’s always open…
Or wait: is it?
I mean, isn’t your president tightening up the borders?
Was it really to keep the foreigners out, or was it to keep the young and combat-able “in”?
Have fun killing Koreans in your righteous war.
Or wait: is it?
I mean, isn’t your president tightening up the borders?
Was it really to keep the foreigners out, or was it to keep the young and combat-able “in”?
Have fun killing Koreans in your righteous war, just like you love to kill Iraqis.
Analysts are morons. They see the Apple resurgence now that it is totally in their faces. Let’s give them a gold star.