Intel Mac sales strong

American Technology Research's (AMTR) Shaw Wu is maintaining a 'buy' rating on Apple's stock (AAPL), despite the recent weakness, according to a recent research note. Wu said AMTR had checked into Intel's yeilds, which have apparently improved, thus enabling Apple to ship more high-end Core-Duo based Macs. Wu also noted that interest in the new MacBook Pros remains high, with key distributors and Apple stores already in stock and many more MacBook Pros en route to pre-order destinations. Wu says "Over the next 12-24 months, we see a Mac upgrade cycle with the Intel transition, continued penetration of iPod [plus] iTunes in digital music and video, and extension of both its Mac and iPod [plus] iTunes franchises into new business areas including home entertainment servers, cell phones, and other consumer electronics."

Wu also noted recent concerns over the "well publicized" glitch in Apple's Front Row software on Intel-based iMacs. Wu said that the problem was "in-line with [AMTR's] expectation that this would be a software fix and not a hardware component problem that many feared would require a recall."

Wu continued, saying that the firm beleives "that Apple's fundamentals remain sound and arguably among the strongest in technology, but negative investor sentiment and its weak technicals may indicate further share price downside."

by MacNN Staff