updated 11:00 am EDT, Mon June 6, 2005
IBM to be unaffected
S&P analyst Megan Graham-Hackett said a switch by Apple to Intel processors will . "We do not view Apple as a critical customer for IBM's chips, and note that over the past year, and again at IBM's analyst meeting in May, the company has emphasized its focus on supplying chips to the video game console market. No change to our estimates. We view IBM shares as worth holding, trading at a price/sales ratio of 1.3 times, in line with peer average." S&P also reiterated a hold rating on Apple. The firm believes a move to Intel "would be potentially positive for Apple's PC market share opportunities if it is able to negotiate lower chip prices from Intel. We await details on timing and product lines involved at Apple's developers conference, which starts today."