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Intel transition difficult, AAPL falls

updated 05:00 pm EST, Mon March 6, 2006

Intel transition difficult

Shares of Apple today fell nearly two percent to $66.37, while Thomas Weisel issued a research note stating that the transition to Intel is "proving difficult." The firm said its checks with Apple specialist resellers across the U.S. found soft demand for Macs, and a lack of supply for Intel-based notebooks, according to MarketWatch. A majority of the resellers expect the transition to have a negative impact on Apple's current quarter, according to Weisel. The analyst firm maintained its peer perform rating, as well as its current earnings estimates. Weisel dubbed the stock's valuation "high but reasonable," growth opportunities considered.

by MacNN Staff




  1. trevc

    Joined: Dec 1969



    After the last role-out of products which were received rather luke-warmish for both products on top of the hype of these new portable computers (origami, etc.)which I would think would be a HUGE competitor to the iPod along with reports of low-end components used in their computers, Apple will have to start pulling shtuff out of it's you know where to get people to boost up stock.

    It's amazing how fast fortunes turn around, just wonder if it'll get worse before it gets better (it always does with Apple!)

  1. RyanG3

    Joined: Dec 1969



    I'd like to see proof in numbers as to the claim Apple is not selling many Intel Macs. Sounds to me someone is stirring the FUD.

  1. legacyb4

    Joined: Dec 1969


    Difficult transition?

    "Difficult transition" to me as a Mac user would be specific issues such as software incompatibility, lack of ability to use existing hardware devices, or perhaps uncertainty if things will "work".

    So far, user reports point to the contrary (except for Adobe apps and a handful of others not being Universal).

  1. eswinson

    Joined: Dec 1969



    Difficult for who? Apple seems to be making good progress. Now they just have to finish out the pro laptop line, iBooks, pro macs and servers. I don't think it is a bad thing to not introduce too many new features while basically introducing a whole new architecture. As far as apps I remember when apple switched from 68K to PPC. not very many third party apps the first few month either were native. If I recall correctly Photoshop wasn't PPC aware for a long time.

    Are these the same analysts that said iPod sales were soft last quarter?

  1. dashiel

    Joined: Dec 1969


    if it goes much lower

    seriously if the stock goes much lower i might add to my collection of apple stock. i easily see apple >$80 by the end of the year.

  1. slider

    Joined: Dec 1969


    RE: difficult transition?

    Well, it's a huge move. I agree with this poster's points about "possible" lackluster sales. I'd add that for those satisfied with their current PowerPC Macs, there needs to be evidence of a performance boost to make moving to a Mactel worth it. I think a lot of current mac users are going to wait and see. One piece of software that'll get me to upgrade if it proves to be significantly faster is Virtual PC. I need to use AutoCad and ArcView, PC only apps.

  1. wr11

    Joined: Dec 1969


    People are buying

    The quote states that they're seeing "soft demand" and "lack of supply" Could that "lack of supply" be due to people buying the damn machines? It's not like Apple is not making them.

    I am waiting to see what happens with the power macs, then given some creative financing I'll buy. I think many people out there with the cash to spend are looking towards the power macs.

    Given the "low end" specs on the intel machines I can only imagine what a full fledged tower will include. The obvious thing will be the Dual-Dual cores, but who knows what else.

  1. Armas

    Joined: Dec 1969


    "Peer Perform" rating ?

    Let's start out proper. This analyst, Weasel analyst? Has not changed his rating on AAPL. Which is "Peer Perform". So, say, the last few years it doubled/tripled, it was also rated that way.....

    Next he asked some "resellers" ( Who?) whether the transition would effect this quarter. Since when do resellers comment on sales, earnings, when they sell computers!! Apple on-line, Stores, catalog sales.... not counted.

    Lack of stock in Apple products always means run-away success.... trying to keep up w/ demand.

    So this idiot said "Don't Buy" for the last several years.... Most of us bought in split adjusted @ $7-ish - now 10 x higher..... Who cares what HE says???

    Ask the guys who have been saying buy.... if anyone has good insight, it's them.

  1. no1bass

    Joined: Dec 1969


    Maybe ....

    I've been a loyal Mac owner since the IIGS days and currently own three. I recently bought an iMac G5 Power Mac right after the Intels were released. Why? Because I got a $200 reduction in price from Apple and a $150 rebate from Amazon. I use Adobe imaging products and two OS 9 products, that if I had to replace with OS X versions, would cost over $500. I imagine that there are a number of people in my situation. The transition to system 10.4.x hasn't been exactly without its problems, either, which may further scare a few people. So - maybe there is some truth in what the gentleman says.

  1. cameronx

    Joined: Dec 1969


    re: difficult transition?

    It wasn't totally unexpected that Apple's transition would come with a soft-spot in sales of PowerPC macs, and so one soft quarter wasn't at all out of the realm of possibilities. I'm thinking specifically of iBooks and old PowerBooks. But, at least in my experience, the market's focus is almost always on the short-term, and right now, I think, fails to impound the pent-up demand that I think is present for new Apple laptops powered by Intel processors.

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