Apple ups Mac build plans on strong reception to new desktops
Apple this month is increasing the number of Macs on order from its Taiwanese suppliers following a better than expected response to its refreshed desktop line, according to a new report.
Speaking to clients in a research note Wednesday, Kaufman Bros. analyst Shaw Wu said sources within the Cupertino-based company's supply chain and distribution channels are seeing a "stronger-than-expected reception" to new iMacs, Mac minis and Mac Pros announced last week.
"We find this quite impressive in light of very difficult macroeconomic conditions," he wrote, noting that Mac build plans have been increased as a result. "If current rates keep up, we believe Street estimates looking for 2.2 million-2.3 million Macs for the March quarter could turn out conservative."
In particular, Wu said feedback on the new Mac mini from distribution sources has been "surprisingly positive." And while he was hoping to see Apple drop the system's price alongside the refresh, he now concedes that "perhaps $599 is a decent entry point" given that the new minis sport faster processors, larger hard drives, and much faster NVIDIA graphics chips.
The analyst even went as far as to equate the petite desktops to a premium sub-compact automobile alongside predictions that the new models could "turn out to be a surprise dark horse hit" of the Mac maker's desktop line.
"To us, the new Mac mini is like a Mini Cooper, a premium small form factor product but with decent horsepower. We believe the Mac mini could turn out to be a surprise dark horse hit," he wrote.
Wu, who was responsible for some of the off-base reports (1, 2) of quad-core iMacs leading up to last week's launch, says he believes Apple made the right move by sticking with Core 2 Duo processors in the refreshed line of all-in-one desktops, which "provide plenty of power" for the majority of users.
As for the first quad-core iMacs, he now says he's hearing a likely introduction in the "summer or fall time frame" to better coincide with the release of Mac OS X 10.6 Snow Leopard, which will be optimized to take advantage of systems with more than two processing cores.
In the same research note, the analyst also cited "sources" who tell him Apple is working on a couple of new initiatives, namely a "smaller MacBook Air" and "larger iPod touch." The commentary, which seem more like speculation, suggests the former could arrive as "MacBook mini" and serve as the company's answer to the netbook segment.
Shares of Apple, which came under immense pressure Friday and Monday when a pair of analysts trimmed their outlook on the company citing concerns of slowing sales amid an ailing economy, have risen more than 10 percent in the last 48 hours -- after rising some 6.6 percent on Tuesday to close at $88.63, shares are up another 5.16 percent in Wednesday morning Nasdaq trading to $93.20.
In light of the positive momentum driven by new iMacs and Mac minis, Wu maintained his Buy rating and $120 price target on shares of Apple.
iMac Discounts
For those interested in one of Apple's new iMacs, Apple authorized reseller ClubMac is offering AppleInsider readers an additional 3% off its already discounted pricing using coupon code APPINSDRCWB03053 or by following the price links in our Mac Price Guide. The result is the cheapest prices we've seen so far on the new desktops, with combined discounts between $115 to $175.
Similarly, MacMall is offering 3% off new MacBook Pros with coupon code APPINSDRMWB19222, resulting in combined discounts between $188 and $320. The discounts also apply to the previous generation iMacs and MacBook Pros, meaning you can pick up a 20-inch 2.4GHz iMac for $899.17 and a 15-inch 2.35GHz MacBook Pro for $2,178.52. Full details for those interested can be seen here.
Speaking to clients in a research note Wednesday, Kaufman Bros. analyst Shaw Wu said sources within the Cupertino-based company's supply chain and distribution channels are seeing a "stronger-than-expected reception" to new iMacs, Mac minis and Mac Pros announced last week.
"We find this quite impressive in light of very difficult macroeconomic conditions," he wrote, noting that Mac build plans have been increased as a result. "If current rates keep up, we believe Street estimates looking for 2.2 million-2.3 million Macs for the March quarter could turn out conservative."
In particular, Wu said feedback on the new Mac mini from distribution sources has been "surprisingly positive." And while he was hoping to see Apple drop the system's price alongside the refresh, he now concedes that "perhaps $599 is a decent entry point" given that the new minis sport faster processors, larger hard drives, and much faster NVIDIA graphics chips.
The analyst even went as far as to equate the petite desktops to a premium sub-compact automobile alongside predictions that the new models could "turn out to be a surprise dark horse hit" of the Mac maker's desktop line.
"To us, the new Mac mini is like a Mini Cooper, a premium small form factor product but with decent horsepower. We believe the Mac mini could turn out to be a surprise dark horse hit," he wrote.
Wu, who was responsible for some of the off-base reports (1, 2) of quad-core iMacs leading up to last week's launch, says he believes Apple made the right move by sticking with Core 2 Duo processors in the refreshed line of all-in-one desktops, which "provide plenty of power" for the majority of users.
As for the first quad-core iMacs, he now says he's hearing a likely introduction in the "summer or fall time frame" to better coincide with the release of Mac OS X 10.6 Snow Leopard, which will be optimized to take advantage of systems with more than two processing cores.
In the same research note, the analyst also cited "sources" who tell him Apple is working on a couple of new initiatives, namely a "smaller MacBook Air" and "larger iPod touch." The commentary, which seem more like speculation, suggests the former could arrive as "MacBook mini" and serve as the company's answer to the netbook segment.
Shares of Apple, which came under immense pressure Friday and Monday when a pair of analysts trimmed their outlook on the company citing concerns of slowing sales amid an ailing economy, have risen more than 10 percent in the last 48 hours -- after rising some 6.6 percent on Tuesday to close at $88.63, shares are up another 5.16 percent in Wednesday morning Nasdaq trading to $93.20.
In light of the positive momentum driven by new iMacs and Mac minis, Wu maintained his Buy rating and $120 price target on shares of Apple.
iMac Discounts
For those interested in one of Apple's new iMacs, Apple authorized reseller ClubMac is offering AppleInsider readers an additional 3% off its already discounted pricing using coupon code APPINSDRCWB03053 or by following the price links in our Mac Price Guide. The result is the cheapest prices we've seen so far on the new desktops, with combined discounts between $115 to $175.
Similarly, MacMall is offering 3% off new MacBook Pros with coupon code APPINSDRMWB19222, resulting in combined discounts between $188 and $320. The discounts also apply to the previous generation iMacs and MacBook Pros, meaning you can pick up a 20-inch 2.4GHz iMac for $899.17 and a 15-inch 2.35GHz MacBook Pro for $2,178.52. Full details for those interested can be seen here.
Comments
I really have to say heaven help Kaufman Bros if Shaw Wu is indictaive of the calibre of their anylists. Over time reading his "anylisis" he seems to be constantly off the mark and then quickly changes his mind in line with what has occured rather than what is he anticipated would occur. Most posters on this forum seem to have more insight than this guy.
We do....Wu's making a killing off of scraping AI for info (baseless speculation hehehe)
It doesn't take a Rocket Scientist to know that there was pent up demand for a decent mini. Hell i'm seeing significant interest in using them as HTPC.
Apple needs to continue to bang out the hardware and make said hardware a good value for most. Then they can focus on turning those hardware numbers into iTunes and App store eye popping numbers.
No one is monetizing their online services as well as Apple right now but they've got to keep the poker in the fire.
In particular, Wu said feedback on the new Mac mini from distribution sources has been "surprisingly positive."
Gee, that wouldn't be due to 18 months of pent-up demand, would it?
/bought two
The iMac catalyst is the additional 3% appleinsider discount @ club mac.
LoL. I'll add a note about this in the article. The best part is the discounts on the previous gen models. You can get a 2.4GHz 20-inch iMac (w/o MiniDisplay Port) for just $100 more than the high-end mini ($899 before tax/shipping).
Are you kidding me. Anyone who spends any time on a Mac forum should have seen this one coming a mile away. Every, and I literally mean every, time a new product was even rumored to be released hundreds of posters would come out of the woodwork begging or praying for a Mini update. Couple that with the decent sales ranks the woefully outdated Mini was still seeing on Amazon and who in their right mind didn't see this coming.
For all of Steve Jobs' disrespect given to the Mini it is what a lot of people want in a Mac, not all, but a lot. So, of course it sold well. Only a fool wouldn't have saw that.
EDIT: Heck, I just went and checked Amazon's ranking again. Three of the top ten best selling desktops are Minis, yeah I said three, the old Mini is actually beating the more expensive new model. By the way, it is selling for less than $500, which I guess means it was a crappy computer since Steve Jobs himself said they couldn't build a computer for less then $500 which wasn't a piece of crap.
As for the first quad-core iMacs, he now says he's hearing a likely introduction in the "summer or fall time frame" to better coincide with the release of Mac OS X 10.6 Snow Leopard, which will be optimized to take advantage of systems with more than two processing cores.
That is pretty bold to narrow it down to a six month period.
makes business sense to upgrade. away from MS
Why is the mac mini selling so well? Could it have something to do with all those of us who cannot stand glossy screens? I bought two, replacing 2 G5 imacs and a good part of the reason is just this.
A of of it has to do with the fact that it IS a Mini. It can be put where others can't.
I use one with my audio system for digitizing my LPs. My nice, big, 61" Tv acts as my screen, a wireless keyboard and mouse on my coffee table, and I'm set!
It also sells well for OEM use on cruise ships, in casinos, hotels, etc. Often, they have large screens on the wall, with the computer concealed somewhere else. Sometimes they are used in stacks as servers, which is why the optical drives are removed and an extra HDD is inserted.
These are pretty useful machines.
With the Nvidia graphics support, they can even play some 3D games decently enough.
By the way, it is selling for less than $500, which I guess means it was a crappy computer since Steve Jobs himself said they couldn't build a computer for less then $500 which wasn't a piece of crap.
I don't think Steve took into account the time factor. In any case, Apple isn't building any minis that are selling for less than $500. At the time it was built in the factory, it was, according to Apple, a $600 computer.
so first quarter 2009 Mini sales should be unusually good. beyond that depends on the unknown impact of Snow Leopard.
A of of it has to do with the fact that it IS a Mini. It can be put where others can't.
Exactly. I've been in labs where there are several groupings of minis (no displays) sitting up in the rafters, linking together a bunch of cables that flow down into and around the room.
Why is the mac mini selling so well? Could it have something to do with all those of us who cannot stand glossy screens? I bought two, replacing 2 G5 imacs and a good part of the reason is just this.
Maybe - maybe it's people that just want a "hobby" Mac, maybe it's people (like me...) that wanted to hook it up to their TVs as an HTPC - I think the mini is unique in that it can literally go ANYWHERE. People have put them in their cars, stacked them into server farms, etc.
I believe that Mini is just Apple's hobby computer. It's why I'm not surprised that it took so long to only marginally update ... as an entry level Mac, it's great - it allows customers who wouldn't shell out the money for an iMac get exposed to OS X on the cheap. It fills the HTPC slot quite well also, and bonus, you get a Mac on the side, So if I want to take a break from watching my recorded TV shows and use the internet or iPhoto or anything else, I can do that without going and getting my laptop. There are others who have probably done much more with their minis.
It's selling well because of the constant expectation of an upgrade at every Apple announcement or event the past year or so, as well as the curiosity of those who may have missed the mini in Apple's lineup the past couple of years. They've gotten some pretty decent press from the new Mini, and I think the exposure will pull more than one or two customers to take a plunge on the mini.
Just like tv is their hobby gadget, the mini is their hobby computer. My dream would be for Apple to make a higher tier mini (called the Mac mini tv or whatever...) that combines the HD output capability and front row interface of tv with the mini's OS X experience and computing power. I don't expect it to happen anytime soon , but like I said, it's a dream....
Why is the mac mini selling so well? Could it have something to do with all those of us who cannot stand glossy screens? I bought two, replacing 2 G5 imacs and a good part of the reason is just this.
Clearly you passed up quite a few matte screens between those two purchases, so I doubt you're sending Apple the message you hope to be sending.
Demand for the new iMac I simply cannot. All that happened was a very minor CPU/GPU bump and an increase to the quantity of RAM and HD storage that bargain PCs have had for years. The new iMac is a HUGE disappointment that has convinced me to go the hackintosh route. I should be able to get a quad core PC and 30" display for roughly the same price as the 2.93GHz iMac.
In the business world we have always reco'd the Mini. In previous form it had more than enough power to run OS X for email/web and Parallels for their old XP/Vista system transferred. When you bid a new set of desktops at cost + labor rates over 5hrs per unit for 100% transition, the Mini with it's low footprint, mounted behind the LCD and WAY reduced power needs tapped with the transition time of less than 1hr with NO CHANGES made to the old system they LOVE IT.
The new version, even better. We tested one here and it outscored a G5 DP 2.7, was nearly PAR with a G5 Quad (quad has dual 1tb/7200rpm drives which is where the mini fell lower). If your still on a G4, any G4 desktop... Get a Mini.
Now if the rest of the world would realize the power behind the MacPro and Parallels server... We'd really have something.
I just hope they stop comparing it to a Mini Cooper.... Smallest/Biggest POS ever built! I've had 3, I'm done. There not worth it.