Analyst expects slower iPod growth rate
updated 05:05 pm EDT, Fri April 7, 2006
Slower iPod growth rate?
Banc of America today cut its price target on Apple shares from $82 to $77, causing the stock to drop two percent. The firm cited Apple's lower forecasts for iPod and Mac sales as the cause, and said that iPod sales will remain strong with a slightly less substantial growth rate. BofA also believes that Apple's market share gains will be less than expected, according to Reuters. Apple shares had gained 15 percent over the past two days following the company's announcement of its Boot Camp software. By unveiling free software that will allow Intel Macs to run Windows XP, Apple hopes to broaden its market share by offering Mac users access to previously unusable Windows applications. The company has struggled with growth in the past -- especially in the enterprise market -- as businesses were hesitant to purchase Macs, mostly due to software limitations.
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analyst MOTO statement
MOTO = Master Of The Obvious
After the last few years of phenomenal growth with the iPod due to growing popularity, it would be expected at some point that it reaches a saturation point in the market. No company can continue to grow their market by 2x to 3x year over year forever. iPod continues to sell very well though as they continue to innovate (i.e. the video iPod .. I upgrade my 3rd generation for it). Last time I went to the Apple Store the check out line was all the way to the door. It must be really bad if sales are that poor.
As for not growing Apple's market share, I think the analyst must be smoking crack. But that is just my opinion. Boot camp for the switchers, and secure/mature OS X for windows users tired of viruses and spyware. Move on. Pay no attention to Bank of America on this topic.