Friday, January 13, 2006
How Sweet It Is
Apple in the catbird seat - in the computer segment
AppleInsider reports that "research and investment firm PiperJaffray today raised its target price on shares of Apple Computer from $80 to $103." Probably not a bad idea since Apple's actual price has been higher than the old target price for half a week now.
What's really interesting, though, is PJ's reason for thinking Apple will continue to go up, up, up. Dismissing claims that Apple is a new "internet bubble" stock, PJ analyst Gene Munster says Apple is the real thing. Why? Well, because...
Now look at what Bob Cringely says about what kind of year 2006 will be in the tech sector:
Add it up and what do you have? Apple's much-maligned - and much made-fun-of - focus on the reviled "consumer" sector has now become the mark of its success. Despite all the noise about how Apple was neglecting Macs in favor of iPods, and despite the fears of a buying drought as customers held out for Intel-based Macs, Apple has managed to produce significant growth in Mac sales, beyond anyone's expectations. Moreover, 2006 figures to be a bang-up year in the individual consumer space, and Apple is among the best-positioned companies in the "fastest growing segments" of that space.
The Mac is a toy. Apple will fail beause it can't even get arrested in the enterprise. Apple is only about iPods. Meanwhile, Apple's market cap just surpassed Dell's.
How Sweet It Is.
AppleInsider reports that "research and investment firm PiperJaffray today raised its target price on shares of Apple Computer from $80 to $103." Probably not a bad idea since Apple's actual price has been higher than the old target price for half a week now.
What's really interesting, though, is PJ's reason for thinking Apple will continue to go up, up, up. Dismissing claims that Apple is a new "internet bubble" stock, PJ analyst Gene Munster says Apple is the real thing. Why? Well, because...
Looking beyond this year, the analyst sees the Apple story continuing to gain momentum in 2007, as the company is addressing the fastest growing market segments that touch the digital consumer.
Now look at what Bob Cringely says about what kind of year 2006 will be in the tech sector:
Two thousand and six will look completely different whether you are a home or business computer user. Home users will find this an exciting time, with new products and services galore, while business users -- especially BIG business users -- will have to suffer with the breakdown of traditional suppliers and with inevitable consolidation problems as their list of suppliers shrinks and product lines are merged.
Add it up and what do you have? Apple's much-maligned - and much made-fun-of - focus on the reviled "consumer" sector has now become the mark of its success. Despite all the noise about how Apple was neglecting Macs in favor of iPods, and despite the fears of a buying drought as customers held out for Intel-based Macs, Apple has managed to produce significant growth in Mac sales, beyond anyone's expectations. Moreover, 2006 figures to be a bang-up year in the individual consumer space, and Apple is among the best-positioned companies in the "fastest growing segments" of that space.
The Mac is a toy. Apple will fail beause it can't even get arrested in the enterprise. Apple is only about iPods. Meanwhile, Apple's market cap just surpassed Dell's.
How Sweet It Is.
