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."