financial/investor
03/16/2004, 2:25pm, EST
Tuesday, March 16th
BofA analyst warns G5 sales may fall short
Despite the success of the iPod in consumer markets, Banc of America Securities analyst Keith Bachman today cautioned that Power Mac G5 sales could be slow for the second quarter in a row. "We believe [G5 sales are] the single-best gauge of the growth potential of Apple," Bachman said in a research note. "The G5 is more important that the iPod in terms of (earnings per share) impact." Apple shipped 206,000 G5 systems last quarter, falling short of many analysts' estimates. Bachman estimates that Apple will ship 195,000 G5s this quarter. After running up to 27.56 earlier this month on excitement about the iPod's success, shares of Apple have since fallen about two points.
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Kind of stupid to base a worldwide company's growth on a single product line. I've got a three year old that picks stocks based on how far he can blow boogers, maybe BOFA will hire him.
My guess is that much of the market is doing what an earlier poster suggested - waiting for the next round. My hope is that we'll have G5s in the iMac and PowerBook lines before September, because the G4 is getting so long in the tooth. I know that I'm holding off at work and home to upgrade waiting for that transition. I squeeze six or more years out of my hardware, and I don't want to buy equipment running off a chip at the end of its life cycle.
HURRY THE HELL UP. I'm getting sick of my old ass computer and I need a new one. INTRODUCE THEM ALREADY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Apple seems pretty content to wallow complacently where they are at. I realize that the PC world hasn't hit much great stride since going to 3GHz last summer as well, but that only exemplifies the problem. Apple actually had a chance to "catch up" in terms of pure mhz numbers, but instead has taken an approach that if the other side isn't going to beat us to death, then they rather wait until as long as possible so they can make as much profit as possible from 7 month old processors, which they have to be getting cheaper now than they were in the beginning and they would get the 2.5+GHz for. I'm sorry, but a product update in the PC(mac) world shouldn't take longer 6 months max, and at this rate, it feels as though they are going to skip a generation of processors and go straight to 3.0GHz for August. (LOL, 3GHz by summer's end! HA! :)
And I would argue that you can hinge the future of Apple on the success of the G5. The G5 is the company's flagship in computers and statement they make to the world. If they don't sell well, developers will assume the mac is only good for consumer apps (because all that will be selling well are the consumer machines), and Apple already has much of that market cornered, and thus there will be no one supporting the mac eventually. Its rather extreme, but there is no doubt that the G5 HAS to sell well. Unless Apple wants to become a company that only markets iPods.
Screw it, I am calling Boba Fet, he'll know what to do!!!