updated 10:25 am EDT, Tue September 13, 2005
Although Apple's competitors have failed to produce anything to successfully challenge the iPod, may affect Apple's growth, according to Troy Wolverton of TheStreet.com. "Any slowdown -- even a slight one -- could have major implications for a stock trading at more than 30 times next year's earnings, a considerable premium to rivals such as Dell and Hewlett-Packard." That danger was illustrated in April when Apple's stock fell despite blowout quarterly results. Analysts blamed the selloff on a disappointing drop in the average selling price of the devices. "Despite their similar design and ease-of-use advantages, the iPod line has had one thing going for it that Apple's computers did not: price competitiveness." With the introduction of the iPod nano, Apple has sacrificed some of that price competitiveness, Wolverton says.