Apple's Bad Bet: Delaying It OS
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Price: $316.93 +0.51%
Overall Analyst Rating:
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EPS Growth %: +20.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
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From 247WallSt
Apple (Nasdaq: AAPL) announced that it is delaying the release of the new OS for Mac,Leopard, until October because the engineers who were to build it are working on the iPhone.
The decision makes little financial sense and appears to be linked to Apple's desire not to upset Wall St. and customers by delaying its latest toy.
Sales of the Mac hit over $2.4 billion in the last quarter, up 40% from the same period the year before.
Even if Apple sells three million iPhones between its launch in June and when Leopard is released in October, its revenue on the $500 phone is unlikely to reach $1.5 billion. And, that is probably the best case.
Mac sales are growing at an amazing rate. Apple sold 1.6 million in the last quarter up 28% from the same quarter the year before. Pacific Crest Securities said Mac sales grew 100% in January 2007 compared to the previous January and 55% over the immediately previous month.
Apple is risking a sure thing, gambling that a new product will sell.
Douglas A. McIntyre
For more market insight go to http://www.247wallst.com/
Apple (Nasdaq: AAPL) announced that it is delaying the release of the new OS for Mac,Leopard, until October because the engineers who were to build it are working on the iPhone.
The decision makes little financial sense and appears to be linked to Apple's desire not to upset Wall St. and customers by delaying its latest toy.
Sales of the Mac hit over $2.4 billion in the last quarter, up 40% from the same period the year before.
Even if Apple sells three million iPhones between its launch in June and when Leopard is released in October, its revenue on the $500 phone is unlikely to reach $1.5 billion. And, that is probably the best case.
Mac sales are growing at an amazing rate. Apple sold 1.6 million in the last quarter up 28% from the same quarter the year before. Pacific Crest Securities said Mac sales grew 100% in January 2007 compared to the previous January and 55% over the immediately previous month.
Apple is risking a sure thing, gambling that a new product will sell.
Douglas A. McIntyre
For more market insight go to http://www.247wallst.com/
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