Hardware
Apple Ready to Taste $200
Daniel Del'Re
12/26/07 - 12:39 PM EST
Strong holiday spending on computers capped a banner year for Apple(AAPL Quote), which should keep its shareholders among the happiest in the tech sector.
The company's notebooks ranked among the top-selling computers
at online retailer Amazon.com(AMZN Quote) during the Christmas shopping season.
The news is an important signal that Apple's torrid growth rate hasn't
lost steam. Mac sales and unit shipments have been on the
rise, and the trend has more than offset the moderating pace of iPod
sales, which resurrected the company and lifted it into the
top tier of consumer electronics.
Apple's stock was recently up 20 cents to $198.91. The shares earlier hit a 52-week intraday high of $199.97 -- they've risen nearly 140% in 2007.
In Apple's most recent quarter, a 34% increase in Mac unit shipments over last year yielded a 40% boost in computer sales and
generated half the company's total revenue. IPod sales, by
contrast, grew just 4% and accounted for 26% of total sales.
Notebooks make up about 60% of Apple's computer shipments.
Strong Mac sales also underscore the success of Apple's finely honed
product management strategy. The company carefully timed the release
of updated notebook and desktop computers this year, and also released
a new suite of audio-visual software and the latest version of its
operating system.
In the past few years, Apple has gotten more than half of its computer
sales during the final two quarters of the year, and executives have
appeared bullish about holiday shopping.