Apple among PC stocks to watch in 2005
updated 10:05 am EST, Mon January 3, 2005
Limited upside to AAPL?
The growth in PC sales will shrink from 14.5% to 10.1%, but Apple's product diversification should help the company in 2005, but the after a 200 percent increase in 2004: "Apple, of course, is becoming less of a computer company every minute -- and is therefore less vulnerable to the ups and downs of the PC market. In its fourth quarter, for example, sales of Apple's hit iPod music player and related services such as iTunes accounted for 27% of the company's total revenue. In the December quarter, when consumer-electronics items top holiday shopping lists, the iPod will contribute 32% of the company's revenue and about 26% of gross profit." The article notes that several analysts recently downgraded the stock because the "massive run in 2004".
