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Apple moving away from Mac core

updated 11:40 am EST, Wed December 21, 2005

GS raises AAPL estimates

Apple will continue to , according to one industry analayst. In a new research note, Goldman Sachs research analyst David Bailey maintained an "in-line" rating on Apple, but raised earnings estimates for the company, expecting holiday iPod demand and anticipation of upcoming product announcements to continue to drive earnings growth into 2006, according to Forbes: "2006 will undoubtedly mark another major year in Apple's transformation, but its new markets bring together tougher competition," wrote the analyst in a recent research note. "If early indications from suppliers prove correct, Apple is likely to move further from its Mac core in 2006, leveraging its brand and building on the consumer success of iPod."

Bailey said that Apple's first move into the living room could come at Macworld Expo in January 2006, where Apple would introduce an updated Mac mini with a remote control and bunlded with Front Row.

Citing tight supplies of iPods this holiday season, the analyst estimates that Apple will sell 11.6 million iPods in the December quarter, up from his previous estimate of 10 million, according to the report. The analyst raised his fiscal first-quarter earnings-per-share estimate for the company to 53 cents from 49 cents as well as raised the fiscal 2006 EPS estimate to $1.83 from $1.64.

by MacNN Staff




  1. suhail

    Joined: Dec 1969


    I'll have to disagree

    with that analysis, to some extent. Apple will focus more outside it's box, but as people buy less Microsoft they buy more Apple. Electronic devices such as the iPod and PalmPilot are partially useless without a computer.

    Mac sales are increasing which allows us to assume a (currently minute) decrease in PC sales. One day it might not be so minute.

    RIP MS

  1. jimothy

    Joined: Dec 1969



    What's up with these headlines on MacNN lately? The ones that state speculation or opinion as fact.

  1. scottnichol

    Joined: Dec 1969



    unless this analyst can show that apple is spending less to develop Mac OS X or deliver few models of notebook or desktop hardware, there's really nothing to talk about.

    relatively speaking, there may be more resources being added to the iPod division, but i don't think that's coming at the expense of OS X development teams.

    new dual core hardware, a new professional application, and an upcoming conference called "MACWorld", i just don't see this as moving away from the mac at all.

  1. beverson

    Joined: Dec 1969


    so many analysts

    I'd like to know what's up with these analysts lately. Is Apple's current success garnering more attention (and wild guesses) from analysts? Or is the Mac community just more aware of the increased attention Apple is getting? Both? Interesting, at least.

  1. jasong

    Joined: Dec 1969


    Move away?

    I like how his only example of a move away from the Mac core is a new Mac . . .

    -- Quote -- Bailey said that Apple's first move into the living room could come at Macworld Expo in January 2006, where Apple would introduce an updated Mac mini with a remote control and bundled with Front Row.

  1. ZinkDifferent

    Joined: Dec 1969


    My Analysis...

    The more analysts are falling over each other to second guess an industry they know absolutely nothing about(*), the better for Apple and AAPL

    In the end, think of it this way -- considering how little they understand Apple, how 'expert' would you think their opinions are about every other stock they talk about...?


  1. varcos

    Joined: Dec 1969


    reason he's an analyst

    He's an analyst because he analyzes the past and from that creates their own future. It's true that Apple has been moving away from it's Mac roots the last few years. But I think the reason behind that is the slow processor advances we've had. Now that we're using the same architecture as the rest of the industry, I believe we'll see massive gains in both the time Apple spends on it's Mac division this year and Mac marketshare because of it.

    2006 is going to be a VERY exciting year for the Macintosh.

  1. Glasspusher

    Joined: Dec 1969


    diversifying != mving awy

    Diversifying does not equal moving away from the mac base. I'd be happy if Apple (or anyone) replaced the mac with a better computer, but I'd be sad to see it go with nothing better out there. Just because Apple is kicking butt with the iPod and has more things in the pipe does not, to me, mean they're leaving the mac behind.

  1. Peter Bonte

    Joined: Dec 1969


    shift its center

    Quote : "Apple announced new products over the next few months that could shift its center of gravity further into the consumer electronics realm."

    Its happening now with the iPod so this seems like the next logical step for Apple to take, computers are becoming a livingroom commodity so its not only logical but inevitable.

  1. tuscmat

    Joined: Dec 1969


    Glasspusher is right

    Jobs is doing his job by growing the business and not confining Apple to the Mac only. He can now leverage the iPod's success by using the cash to go into other areas. MS did the same thing when they created the Xbox and everything else by leveraging the cash brought in through Windows and Office sales. The major difference is Jobs is not in a position to bully, monopolize, and destroy the competition. Growing Apple should be Jobs' priority and that's exactly what he's doing no matter what anyone thinks of him personally.

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