Kaufman downgrades AAPL on iMac, economy
updated 05:05 pm EST, Tue February 24, 2009
Kaufman AAPL downgrade
Apple may do worse than previously expected in the financial quarter ending with March, according to Kaufman Bros'. Shaw Wu. The analyst comments that while Apple was recently able to return to the $100 price point with its shares, it has since slipped again, in what Wu attributes to a general market sell-off, and overall worries about Apple's growth potential in the context of a global recession. Worsening matters is Apple's signature iMac desktop, which supply chain checks are said to show is not selling well.
This is believed to be because of a drawdown in inventory, as well as buyers waiting for an expected hardware upgrade. Kaufman predictions for total Mac shipments in the March quarter are being reduced from 2.4 million to 2.2, in turn contributing to lowered revenue expectations of $7.7 billion instead of $7.8 billion. The firm's EPS forecast remains at $1.06, though Wu notes that both figures are below consensus values of $8 billion and $1.08, respectively.
iPod estimates are holding at 9.8 million however, while iPhone figures are being pushed from 3 million to 3.2. A truly positive quarter is believed to be dependent on Apple resuscitating the iMac, but Kaufman is said to be keeping to the view that a refresh could happen as late as June.
In the long term, FY09 predictions have been dropped from $35.2 to $34.8 billion in revenue, with a consistent $5.20 in EPS. FY10 EPS is also unchanged at $6.45, but revenue is forecast to be $41.3 billion instead of $42.2. The price target for shares is $120.
but...
02/24, 05:22pm reply
didn't he hear. The fed chief says the recession will end this year. So you know it must be true...
testudo
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Magic
02/24, 06:21pm (1 reply) reply
So, basically, these guys snoop around for rumors and rumors of rumors, count boxes in warehouses, add a little personal opinion, and voila, you have a professional analysis. I wanna get me one of these jobs.
lkrupp
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Apple shares down
02/24, 06:48pm reply
Apple shares down because the whole market was down. The whole market was down because Obama was speaking on how HE will "save" us. If we can just get him to shut up! Then Apple's shares won't be so vulnerable! : ) And the free market can get back to correcting itself!
Guest
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Serves Them Right...
02/24, 06:59pm reply
If Apple actually updated their desktops on a regular basis, maybe they'd sell more.
When's the last time the Mac Pro was updated? January 2008? (413 days ago) How about the Mac Mini? August 2007.2007!!!!!(567 days ago!). How about the iMac??? April 2008 (302 days ago).
THAT's why they're not selling well, Apple. STOP putting all your eggs in the iPod, iPhone basket and UPDATE YOUR DESKTOPS REGULARLY.
Guest
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How about this?...
02/24, 08:49pm reply
F*CK Apple. There's your answer. Like it?
Guest
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Agree: serves them right!
02/24, 10:04pm reply
Apple is lucky that anyone is buying any desktop models. What do you expect by charging premium prices for last generation's technology? Stupid a$$h0les. I'm one who gave up waiting on them to refresh the iMac line, and instead went and built a sweet PC from NewEgg. But it really peeves me off, for now I don't have iLife anymore for the kids. But, we get over it. Who does Apple think they are by not refreshing their product pipeline? Idiots!!!
Guest
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Wu
02/24, 10:58pm reply
And how often is Wu correct?
hexor
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If I could....
02/25, 12:47am reply
I would take another bite out of the apple and regurgitate and make the fanboys eat it. FCK APPLE and their butt tight marketing skills...
I replaced them ahead of time with a PC myself after many years of use, those FCKERS!
Let's all kick the dog together! Hackint0sh and Linux, welcome to the new computer age... F*CK Apple.
Guest
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Agree re Serves Them Rite
02/25, 07:54am reply
I absolutely agree that Apple deserves to have its stock downgraded. Apple has shown a consistent knack for neglecting its entire desktop line, with the Mini receiving the worst possible treatment, and the Mac Pro coming in at a close 'second to last'.
I couldn't BELIEVE the Mini hasn't been updated since August of 2007. That is just wrong. And, sure enough, a quick check of Apple's online store shows that they want $599.00 for a Mini with NO DVD burner and GMA950 graphics. It's laughable.
If Apple knows what's good for them, they will update the Mini SOON, with better specs AND a lower price point.
If they don't, that just proves whoever is making the pricing decisions over @ Apple is living in a fantasy land.
Guest
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re: guest
02/25, 09:06am reply
Moderators, guest comments have gotten completely out of control. The trolls have stormed the castle.
Please consider disabling the guest comment feature.
cwsmith
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