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 Needs Cheaper iPhone, Netbooks to Thrive

Updated from 12:07 p.m. EST

Apple (AAPL - Get Report) may be faring better than other recession-hit tech firms, although tightening IT spending could still force the company to rethink its product strategy.

This is the message from Apple watchers who are keen to see the notoriously secretive tech company overhaul its product roadmap with low-cost netbooks and iPhones.

Apple, which holds its annual shareholders' meeting Wednesday, should make mini-laptops, or netbooks, one of its top priorities for 2009, says Ezra Gottheil, an analyst at Technology Business Research (TBR).

"They need to address the netbook problem," he told Gottheil said that, ideally, this would not be a general-purpose PC, but rather a $600 device for email, Web browsing and games.

With mini-laptops growing in popularity, Gottheil thinks that a low-cost, stripped-down, netbook-style product would open new revenue streams for Apple without cannibalizing its more expensive MacBooks.

"I think it's a strong possibility," he said. "I would expect it to come out before the end of the third quarter, possibly before the end of the second quarter -- the timing depends on how badly Apple is hit by the global recession."

Despite Apple's strong first-quarter results, research firm NPD recently warned that Mac unit sales dropped 6% year over year in January, with iPod unit sales falling 14%.

A move into low-cost computers would be a major strategic shift for Apple, which has traditionally prized performance over price, and it would pit the firm against the likes of Hewlett-Packard (HPQ - Get Report) and Asus

Apple's stand-in CEO Tim Cook did not dismiss this possibility during a recent conference call.
1 of 3

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 $94.05 -0.82%
HPQ $12.27 -2.39%
NOK $5.93 0.17%
MSFT $49.87 -0.06%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs