Apple's Intel transition could slow Mac sales
updated 07:20 am EDT, Wed June 22, 2005
Mac sales could slow
Apple's move to the Intel architecture , according to a TheStreet.com columnist. The announcement earlier this month could reduce the surging momentum generated by the iPod and the associated "halo effect," which has been largely been seen as the reason for increasing Mac sales in recent quarters. "While Apple has seen an uptick in Macintosh sales in recent quarters, that momentum may be slowed by the recent announcement that it is switching the processor at the heart of its computers from the PowerPC line produced by IBM/Freescale to chips made by Intel. Although Apple offered valid reasons for the switch, it could lead customers to delay computer purchases or choose rival systems based on Microsoft's Windows operating system. Even with a recent drop, Apple shares -- at 29 times earnings estimates for the current year -- still are trading at a premium to its PC rivals. This implies big growth expectations for the company and particularly its computer business."
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Joined: Mar 2001
My Take
I too was shocked and my feelings running wild when the Intel announcement came. I understand why Apple is making the switch and also perplexed by the ideas the announcement is spawning. I am also in need to upgrade my 15" flat panel iMac 800 MHZ.
I put my feelings aside and started to look at the facts. I am waiting until after the next MacWorld and I will purchase a new G5 iMac. Here are the facts I used to make my decision:
- The Intel switch is going to take about 2 years. I will have the processor used before the switch. It will be the people who are buying the new Intel Mac's that will suffer waiting for the lazy developers to upgrade. They will also be the ones using the Rosetta feature to go backward to my processor.
- After the switch it will take months and months of upgrades, waiting for developers and possibly even Apple to get the bugs out. I remember when this flat panel Mac came out and ran to buy it and a few months later the 17" came out.
- Once the dust settles and the new models upgrade and improve it will be 3 to 4 years. That's how old my Mac is now I am waiting to replace. This thing is a slow dog and I can't wait to hand it down to my daughters for a new G5 20" iMac.
- The bottom line is, while everyone is going through the change and waiting, I will be enjoying the speed and reliabilty of my new G5 iMac doing what it has always done for me. Once the dust settles and everything is Intel compatible I'll be ready to switch from my newest slow dog.
PS. I use XP at work. I even went so far as to look at a HP at Best Buy after the announcement. They really have some great features with the built in media card slots, iPod dock built into the top and the light scribe DVD burners. Everyday I was torturing myself with the Intel announcement, looking at PC's for the time in over 12 years. Then I bought the new Foo Fighters CD at Tower records. I put it in my PC at work and couldn't import it due to the new copy right protection. Brought it home to my Mac and everything went fine. I learned three lessons that day: 1. I will never buy a physical CD from a store again. I will always use the iTunes Store. 2. My Mac has always did what I expected. It's the OS I use the Mac for. It is superior. 3. Looked at everyhting I use on a daily basis on my Mac and most of it is an add on with XP. Apple has never nickeled and dimed my on the basic computer features I always needed.