This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple May Need to Power Up Mac

"They had a strong February," says Stephen Baker, a hardware analyst with NPD Group. "I expect them to have a pretty strong March, too." The research firm has not yet released its March data.

But some analysts are starting to question how long Apple can ride iPod's wave. Competition is starting to grow.

Microsoft (MSFT - Get Report) has targeted the market and is promoting rival players that use its own audio-encoding scheme. Some analysts, though, predict Apple will see a greater threat to the iPod from devices that do more than play music.

Sony (SNE - Get Report) is trying to push its own digital music scheme with music-playing phones from its Sony Ericsson unit and the PlayStation Portable, a new multimedia-capable, handheld game machine.

"The competition is just fierce," Somaney says.

A Snowball From Heaven

Even if Apple is able to continue its torrid iPod growth, the expectations built into its stock have reached the point at which the company needs to show growth in other areas -- namely computer sales, analysts say.

The company has made much of Microsoft Windows users switching to Macs. Meanwhile, a number of analysts have predicted the iPod will have a "halo effect," attracting users to the Mac platform. But to date, the company has had little evidence to show it's attracting new Mac users in significant numbers.

"The iPod is a snowball going downhill: It's getting bigger and bigger every quarter. The Mac doesn't have that kind of momentum," says one hedge fund manager who is long Apple. "I'm hoping that it will develop that kind of momentum. They've got to sell more Macs."

Apple is attempting to do just that. The company is pitching its new cut-price Macintosh, the Mac Mini, to Windows users who are reluctant to switch because of the typically higher costs for Apple computers. And on Tuesday, the company announced that later this month it will begin shipping the latest version of its operating system, which has features not available with Windows.
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DELL $0.00 0.00%
AAPL $93.00 -1.30%
MSFT $48.98 -1.50%
SNE $20.15 -3.10%
FB $99.76 -1.20%


Chart of I:DJI
DOW 15,522.63 -392.11 -2.46%
S&P 500 1,819.51 -32.35 -1.75%
NASDAQ 4,238.3510 -45.2410 -1.06%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs