updated 11:15 am EST, Thu February 16, 2006
AAPL future is bright
Apple's stock has been wavering at about 20 percent lower than its January high of $86 because investors have worried about possible glitches from the transition as well as buyer hesitation creating a sales slowdown, according to BusinessWeek. The columnist argues that while the lack of compatibility of key applications with the new Macs may be holding some customers back, Apple will bounce back in the future. "Adobe Photoshop require[s] reworking for the Intel-based systems-- and the new versions might not go on sale until early 2007. In the meantime, Adobe Photoshop runs about 50 percent slower on the Intel-based iMac than on predecessor iMac G5."
So far, it seems that Apple cannot keep up with pre-orders for the new MacBook Pro, with Apple notifying buyers that they will not recieve their new computer for about three to four weeks after ordering it, says Kharif. As for the new iMac, the report quotes an Apple retailer as saying "there's significantly more demand for the iMac now that it has the Intel processor."
Investor pessimism is unnecessary says Kharif, who points out that "many analysts believe that Apple's market share, if it does fall in the first half, will bounce back-- and possibly go higher-- by yearend." Apple's margins are much higher on its computers (31 percent) than on the iPods (21 percent), so if the Intel switch proves enticing enough for consumers-- as analysts believe it will- Apple stands to gain significantly, notes Kharif.