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AAPL Stock: 562.29 ( -3.03 )

Apple challenged with "seasonality, sustainability"

updated 02:40 pm EDT, Mon April 11, 2005

More Q2 analysis


"Seasonality and sustainability" will for Apple, writes independent research analyst Eugene Walton. "Most consumer electronics firms understand the down cycle of the post-Xmas period, but for Apple, this is a new phenomenon. We are estimating that operating profits will pummel down to $240 for the quarter, a 40% sequential drop. On the bright side, though, Apple should still show significant progress compared with posting only $62 million a year ago." Walton asks if Apple will "be able to stay above $200 million in operating profits for the next few quarters until Xmas season rolls around again? ... We have our doubts. Competition [from Sony and Napster] for digital music is heating up, giving consumers more choices to satisfy their fill."


by MacNN Staff

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  1. Alric1

    Fresh-Faced Recruit

    Joined: Aug 2001

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    04/11, 02:46pm | report spam | Reply |

    Oh Please...

    "We have our doubts. Competition [from Sony and Napster] for digital music is heating up, giving consumers more choices to satisfy their fill."

  1. njfuzzy

    Fresh-Faced Recruit

    Joined: Apr 2001

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    04/11, 02:48pm | report spam | Reply |

    Nonsense

    Apple has been dealing with the same seasonal patterns all along. They have always sold consumer electronics, its just now they have iPods alongside the computers and computer peripherals.

    The iMac is a consumer electronic product. So was the QuickTake. So was the LaserWriter. And so on for almost everything Apple has ever sold.

  1. Deal

    Mac Enthusiast

    Joined: Apr 2001

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    04/11, 02:49pm | report spam | Reply |

    ID10T

    This is as new for Apple as the Bible is to Christians...

  1. riposter

    Fresh-Faced Recruit

    Joined: Nov 2003

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    04/11, 03:28pm | report spam | Reply |

    Pummel?

    "...profits will pummel down to..."
    Nice writing there 'Gene. Here's the definition for pummel, since you obviously haven't a clue...

    http://tinyurl.com/3oqcu
    pum·mel
    tr.v. To beat, as with the fists; pommel: The angry crowd pummeled the thief. See synonyms at beat.
    n. The act of beating, as with the fists

  1. rtamesis

    Dedicated MacNNer

    Joined: Jan 2000

    0
    04/11, 04:01pm | report spam | Reply |

    Hidden agenda

    I get the feeling that these analysts secretly want Apple to fail. After predicting for years that Apple was doomed, it must really be galling for them to now see Apple enjoy success and growth.

  1. koolkid1976

    Fresh-Faced Recruit

    Joined: May 2003

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    04/11, 04:06pm | report spam | Reply |

    Re: Pummel?

    Good one riposter :)

  1. ADeweyan

    Fresh-Faced Recruit

    Joined: Mar 2004

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    04/11, 06:42pm | report spam | Reply |

    Satisfying

    It's going to be satisfying to see these clowns proven wrong. I think it's the over-confident tone as much as anything. But then, over-confidence is what these analysts are paid for, and why shouldn't they be? It's not like any of them are ever held accountable for their miserable rate of accuracy.

  1. tomato71

    Fresh-Faced Recruit

    Joined: Mar 2005

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    04/11, 07:09pm | report spam | Reply |

    gainfully employed?

    What I can't believe: that there is probably someone, somewhere who actually pays Mr. Walton for such insightful drivel.

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

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    04/12, 08:35am | report spam | Reply |

    wait until...

    just wait until all the profits start rolling in from all those lawsuits apple is waging against college students and teenagers.

    that them THAR is megabucks, just waiting to be cashed in.

  1. chulitomio

    Fresh-Faced Recruit

    Joined: May 2004

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    04/12, 09:02am | report spam | Reply |

    duh, duh, duh...

    Competition [from Sony and Napster] for digital music is heating up, giving consumers more choices to satisfy their fill.

    Apple does not compete with Napster. The music store goal is not profit - if it was, then they would close it. The music store sells iPods. Apple barely competes with Sony at the moment - you can't compete from the couch.

    The 'competition' will continue to be pummeled by Apple's strong design, marketing, and innovation. Not that Apple isn't, as all corporations, consistently bungling up and suffering negative impacts caused by gross corporate policy ineptitude - it's just there's more good than bad. So far.

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