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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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
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Apple Financial Results Conference Call Q4-2006 Live Notes – October 18, 2006
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Apple Q4 earnings results: $546M net profit on $4.84B revenue, sold 1.61M Macs, 8.729M iPods – October 18, 2006

36 Comments

  1. @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.

  2. 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.

  3. 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

  4. 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?

  5. 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.

  6. 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.

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