This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple Crisp: Jobs Gyrates at MacWorld as the Core Rots

Wall Street needed a good reason to be excited about Apple (AAPL) after the computer maker's sales warning last night. Unfortunately for the company, nothing of the sort is coming out of its semiannual MacWorld exposition in New York.

As always, the buzz preceding the trade show was abundant, focusing this time on the possibility of some exciting new hardware product announcements: a handheld device, a gigahertz G4 processor, a new line of flat-panel iMacs.

Sorry. Steve Jobs opened his keynote speech by introducing 45 minutes' worth of presentations by applications developers from companies like Adobe, Quark, FileMaker and IBM. Jobs then unveiled OS X 10.1, the fifth facelift for the company's new operating system since its release early this year, and its first substantial upgrade. The new system offers a number of modest improvements, including DVD playback and better networking capabilities.

Apple showing some signs

There were also modest upgrades on the hardware side of the business. There was the new line of faster PowerMacs, with processor speeds of 733 megahertz, 867 megahertz and a high-end model loaded with two 800-megahertz G4 chips. And Jobs unveiled three new iMac models, running at 500 megahertz, 600 megahertz and 700 megahertz. Those models will sell for $999, $1,299 and $1,499, respectively. The first two are available right now, and the high-end model will start shipping in September, Jobs said.

"It was a normal slew of product announcements. There weren't a lot of surprises," said Sanford Bernstein analyst Vadim Zlotnikov, whose firm hasn't done recent underwriting for Apple. "The most surprising thing right now is the earnings."

Tuesday night, Apple forecast a "slight sequential increase" in both sales and profits for its fiscal fourth quarter, which ends in September. That will make it difficult for the company to meet its already lowered sales guidance for 2001. Jobs himself wasn't on the conference call. It was CFO Fred Anderson who was given the unpleasant task of ratcheting down Wall Street's expectations.

Each to his own talent. At MacWorld, Jobs was doing what he does best: marketing. The crowd lapped it up as usual, as evidenced by the white noise of the Mac faithful's incessant applause. In one instance, news that the latest version of OS/X would allow applications to launch more quickly had one attendee pumping his fist in the aisle and exclaiming, "Yes!"

Wall Street wasn't pumping any fists Wednesday, though. Apple lately was off $4.49, or 17.9%, to $20.61.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs