New iPods may face delays - analyst
Shares of Apple Computer fell over 2 percent in early morning trading after one Wall Street analyst said new versions of the company's iPod nano and video iPod players may be delayed by a much as six months.
"We previously believed that new nanos and the widescreen video iPod could ship in Q3 and Q4, respectively," American Technology Research analyst Shaw Wu told clients in a research note. "However, we now believe that both could be delayed by a quarter or two."
Wu now sees a new iPod nano arriving during the December quarter rather than the September quarter. The analyst attributes the delay to Apple's change of SOC (system-on-a-chip) suppliers, in which it elected to use chips from Samsung rather than long-time iPod component supplier PortalPlayer.
"We believe the price points will remain the same at $199 and $249, but that storage capacities will be doubled to 4GB and 8GB, up from 2GB and 4GB," Wu wrote. He made no comment on plans for Apple's 1GB iPod nano offering.
Meanwhile, the analyst said issues surrounding battery life continue to be the "key gating technical factor" that could delay the launch of the much-rumored widescreen video iPod until the first half of 2007.
"Apple is aiming to increase both the screen size and improve the battery life -- two conflicting attributes that are difficult to improve simultaneously and require significant engineering," he wrote. "Depending on how much progress is made, we are picking up that wireless Bluetooth headphones may or may not be included with this next-generation vPod."
Wu said Apple has been experimenting with several different methods to reduce battery consumption, including the use of better battery management software, a bigger battery, and both NAND flash and microdrives. The analyst maintains that when the player does hit the market, it will be a high-end compliment to the company's current video iPod line and not a replacement.
"While it may sound counterintuitive, a positive side effect of these product delays could mean better spacing of iPods in 2007," he said. "With the original nano and vPod released a month apart in late 2005, it created a very strong December quarter but exhausted Apple's iPod pipeline for 2006."
Wu retains a Buy rating on shares of Apple but reduced his price target from $101 to $75 to "reflect the equity market's lower trading multiple."
"We previously believed that new nanos and the widescreen video iPod could ship in Q3 and Q4, respectively," American Technology Research analyst Shaw Wu told clients in a research note. "However, we now believe that both could be delayed by a quarter or two."
Wu now sees a new iPod nano arriving during the December quarter rather than the September quarter. The analyst attributes the delay to Apple's change of SOC (system-on-a-chip) suppliers, in which it elected to use chips from Samsung rather than long-time iPod component supplier PortalPlayer.
"We believe the price points will remain the same at $199 and $249, but that storage capacities will be doubled to 4GB and 8GB, up from 2GB and 4GB," Wu wrote. He made no comment on plans for Apple's 1GB iPod nano offering.
Meanwhile, the analyst said issues surrounding battery life continue to be the "key gating technical factor" that could delay the launch of the much-rumored widescreen video iPod until the first half of 2007.
"Apple is aiming to increase both the screen size and improve the battery life -- two conflicting attributes that are difficult to improve simultaneously and require significant engineering," he wrote. "Depending on how much progress is made, we are picking up that wireless Bluetooth headphones may or may not be included with this next-generation vPod."
Wu said Apple has been experimenting with several different methods to reduce battery consumption, including the use of better battery management software, a bigger battery, and both NAND flash and microdrives. The analyst maintains that when the player does hit the market, it will be a high-end compliment to the company's current video iPod line and not a replacement.
"While it may sound counterintuitive, a positive side effect of these product delays could mean better spacing of iPods in 2007," he said. "With the original nano and vPod released a month apart in late 2005, it created a very strong December quarter but exhausted Apple's iPod pipeline for 2006."
Wu retains a Buy rating on shares of Apple but reduced his price target from $101 to $75 to "reflect the equity market's lower trading multiple."
Comments
I would submit neither. I'm not convinced the analysts are so much ignorant as "tangentally motivated." Though not quite in the way I implied.
If you are trying to indict me, then I'll let you continue to be ignorant of the fact that the core of humor is feigned ignorance.
Originally posted by crees!
And I just had to have APL and bought when it was $72. Tisk tisk.
Haha me too. I'm not selling a share until several years from now though
Originally posted by Sopphode
Haha me too. I'm not selling a share until several years from now though
Same here. Just going to hold on to it and let it do its thing.
Originally posted by ChevalierMalFet
Who? Me or the analyst?
I would submit neither. I'm not convinced the analysts are so much ignorant as "tangentally motivated." Though not quite in the way I implied.
If you are trying to indict me, then I'll let you continue to be ignorant of the fact that the core of humor is feigned ignorance.
haha. not talking to you. just lashing out because these morons have more to do with what the stock does than any product the companies out there release.
Originally posted by _ alliance _
haha. not talking to you. just lashing out because these morons have more to do with what the stock does than any product the companies out there release.
I hear you, that was my reaction too.
Originally posted by F1Turbo
How about a refresh on the 5G while we're waiting? Put an 80 GB or larger drive in it and I'll buy it today. I can't add new music to my 60 GB photo without taking something off, and my space for podcasts is approaching zero. Is Seagate making the perpendicular drives in iPod size yet?
that's the thing. this guy has no idea if that will or will not happen. he is just speculating over the next all-new ipod revisions. slight changes to keep the ipod fresh are always possible. hell, a new ipod could show up tomorrow. remember the intel change earlier this year? quite a bit ahead of schedule, was it not? these morons can't read the future, but people believe their words like scripture...
If they are selling the same iPod video and nano that was hot last year they will look stagnant.
The analyst attributes the delay to Apple's change of SOC (system-on-a-chip) suppliers, in which it elected to use audio decoder chips from Samsung rather than long-time iPod component supplier PortalPlayer.
Which is it, a change of SoaCs, or a change of "audio decoder chips"? I assumem you mean the former, since 1) all previous and current iPods aside from the shuffle use PortalPlayer SoaCs and 2) Apple supposedly is moving to Samsung SoaCs.
Assuming it's the latter, of course, that poses the question why Katie Marsal thinks Apple used "audio decoder chips" from PortalPlayer in the past, since I haven't seen a single iPod model where this rings true. Instead, all previous and current iPods (again, shuffle aside) used "audio decoder chips" from Wolfson Microelectronics.
Does journalism not include 2 minutes of research any more? Jeez.
Maybe this will put pressure on Steve to over work the Apple iPod division some more =D
Originally posted by DeaPeaJay
Hey, from what I've seen from Shaw Wu, he's usually very generous in his opinion of Apple. He had the price target at 101! That's higher than any other analyst I believe. I think he knows what he's talking about. Although, I do hope he's wrong.
No No. He's just thinkng up a couple of reasons to cover his ass and reduce $101 to something more realistic.
That name is just the Kiss Of Death.
Going from $101 to $70+ per share is a reaction to the overall market. There is no more dotcom stories out there, there is no more echo of the dotcoms out there, now that Google has run its course, so the stock market is no longer going to be the big earner that it has been over the last few decades as a whole. Apple will still have great days and innovation, but I believe that the entire market is undergoing a "correction" that will prevent anyone from making really big gains. We are returning to the 1970's in that respect - high fuel costs, rising inflation, wartime instability and an ominous national debt. All these will effect how EVERY stock is being evaluated and that includes Wu's change in AAPL.
Originally posted by _ alliance _
that's the thing. this guy has no idea if that will or will not happen. he is just speculating... ...these morons can't read the future, but people believe their words like scripture...
Says the guy on a rumor site