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AAPL Stock: 102.08 ( + 1.02 )

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iPod\'s dominance a \"risky business\"

updated 10:25 am EDT, Tue September 13, 2005

iPod dominance

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.




by MacNN Staff

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  1. ddukes

    Joined: Dec 1969

    0

    why don't...

    He just buy an iPod and STFU.

  1. haveaduff2

    Joined: Dec 1969

    0

    Deep Thoughts

    Further prove that anyone can get a job doing anything.

  1. Roehlstation

    Joined: Dec 1969

    0

    Why is it...

    Why is it that people like to restate the obvious when it comes to Apple. This is no less true for any one else producing anything than for Apple. This is like the people that claim listening to iPods too loud can cause hearing loss...well last time I checked listening to ANYTHING too loud can cause hearling loss. What stinks is these "analysts" make a lot more money than I do, and they get paid to spout rhetoric.

  1. jimster

    Joined: Dec 1969

    0

    Stick price and reality.

    As we all know.... or if you don't yet know... Stock price really is not based on how well a company does. The price of a comanies stock is determined by what a person is willing to pay for it. I may buy a stock because I believe in the product and the ability to create products that will be viable in the market place. Some may buy stock strictly on the fact it is a well run and turns a consistant profit. The point being, stock price is what that market is willing to pay. The reasons are wide ranging and can not be lumped into a single thing. Basically the stock market and the price really is not an exact science and anything recommended by any so called experts can be wrong. Bottom line. buy a stock at a price you think the value is if you think the company meets your criteria in performance and viability. Your expectations will most likely differ than others.

  1. lmhaffner

    Joined: Dec 1969

    0

    Article summary...

    LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME! LOOK AT ME!

    I can't believe people get paid for this.

  1. climacs

    Joined: Dec 1969

    0

    shorter Wolverton

    "If things don't go well, it could be bad for AAPL!"

    Lots of competition among these Chicken Littles to be the one that's right one of these days.

  1. Dakota Kid

    Joined: Dec 1969

    0

    It's probably true that

    the move to flash memory will allow competitors to offer pricing per gigabyte that *appears* much better. They can play on consumers' ignorance of the differences between flash and hard drive-based players. Still, Apple is offering the better player at prices that competitors could not match *if* they also used flash memory.

    On the other hand, it may be worth it in the long run for Apple to take smaller margins. Apple is in the process of creating a huge installed base of its players. The vast majority of third-party add-ons are for iPods, cars are being made iPod-compatible, and so forth. If Apple's dominance of the marketplace continues for much longer, it will have the effect of creating an infrastructure that really encourages people to own iPods over anything else.

  1. nat

    Joined: Dec 1969

    0

    uh

    he talks about stepping backwards with less for the same price (mini, nano), not once mentioning that it is a move to solid state. he talks about this being an opening for the competition when i've read the competition is quite annoyed about the low price for such a high capacity flash player. gee dude, can you say "homework"?

  1. crayola

    Joined: Dec 1969

    0

    homey

    needs to shut up and eat. cuz he looks like he's one meal away from anorexia.

  1. beeble

    Joined: Dec 1969

    0

    price competitive??

    I've never paid a premium to buy an Apple computer over a similarly equipped computer by any other maker. My iMac's lamp shade display is fantastic. There's nothing else that competes with it. My powerbook is great. It's light and has every feature I could ever want including Bluetooth 2.0 (assuming someone will one day make a BT 2 device). Again, nothing competes with it.

    But for those of you who would like to get down to prices and megabytes and included printers and rebates, remember this. The security situation on the PC platform with the ever increasing threat of viruses and the ever escalating cost of protecting something that should be able to protect itself makes the entire Windows platform untenable from my stand point. I don't have time to deal with it. My time is worth too much. This makes a dual G5 a significantly cheaper computer to me than the cheapest thing to fall off the back of the Dell truck.

    I pay extra for a car with good suspension because I don't want to have to use the airbag. It strikes me as being a h*** of a lot cheaper to avoid a wreck than to merely survive one. I pay the asking price for a Mac for the same reason and am happy to do so because PC's just cost too much.

    And as for the nano, well it's price is not that far from HD based players of similar capacity and they can't do what the nano can do. Namely, look cool and work with the worlds most popular online music store. In light of that it seems like the competition is overpriced to me.

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