Apple shares fall on analyst downgrade
updated 09:45 am EDT, Tue April 12, 2005
AAPL falls on downgrade
Shares of Apple fell $1.82, or 4.2 percent, yesterday, to close at $41.92. This comes after Caris & Co. analyst Mark Stahlman to "Average" from "Above Average." He said another iPod-dominated holiday season is unlikely with a wave of new video-game systems expected to flood the electronics market later this year, as well as the launch of several alternatives -- both media players and services -- to Apple's iTunes music store, which supports only iPod. He also said that rival Microsoft will soon reveal a new version of Windows that addresses the operating system's major security shortcomings. Security flaws in Windows are fueling Mac "switchers," according to many analysts. "There is a sense that the current enthusiasm might have overrun the realities," Stahlman wrote in a research note.
Fresh-Faced Recruit
Joined: Apr 2005
There is some truth here
I personally see iPod sales rising through the year, then remaining steady through Christmas as people rush out to buy their PS3's/Gamecube2/Xbox 2 devices. However, I also believe that, if Mr. Jobs is as smart as we like to give him credit for, come September they'll announce another major iPod update - main in size changes (like 80 - 100 GB iPods), and possibly an iPod video (which would pretty much destroy any chance the Sony PSP has to be the defacto portable media system).
Of course, I could be wrong. This is just my opinion.