Weak future iPod sales?

Analyst firm Cowen & Company maintained a "neutral" rating on Apple after receiving mixed readings in its latest consumer survey, according to one report. "While Intel CPU transition challenges appear more fully discounted, [the] survey suggests potential for significant slowing in iPod growth," analyst Richard Chu wrote in a research note. Chu believes Apple still faces Intel-based Mac transition execution challenges, but his concern has subsided due to conservative Mac unit trends, according to a report from Forbes.com. "Indeed, despite more cautious home PC demand overall, Mac prospects look strong," Chu said. The survey outlook over the next 12 to 18 months for Digital Audio Player -- specifically iPod -- demand is obviously weaker, according to the analyst, despite a sturdy Apple-specific share situation and iPod ecosystem spending outlook.

"That is enough of a caveat to keep us on the sidelines on the stock," Chu said. "Given the twin visible axes of its game plan, the Mac and iPod, there can be little question that the stock will tend to fare best when there is perceived to be relatively clear sailing on both fronts."

by MacNN Staff