Apple's new iMacs viewed as boon for sagging desktop sales
While sales of portable machines saw tremendous growth during Apple's last financial quarter, desktop sales lagged behind. But the release of new iMacs this week is predicted to change that in a big way.
Piper Jaffray
Following the announcement of new hardware from Apple on Tuesday, Piper Jaffray Senior Research Analyst Gene Munster issued a new note to investors, in which he predicted that the new iMacs will help Apple's desktop market rebound during the December quarter. In the September quarter, desktop Macs saw a year-over-year decline in sales of 16 percent.
"The headwind that existed in the Sept. quarter due to aging Mac desktops has now been turned into a tailwind for Mac units in the Dec. quarter," Munster told investors.
In all, he expects 2.86 million total Macs to be sold in the company's first quarter of its 2010 fiscal year. That would put sales up 13 percent year-over-year -- a number that Munster said could prove conservative, given that total Mac sales of portables and desktops were up 17 percent in the September frame.
Given Tuesday's releases, he believes that Wall Street expectations for Mac sales could also be conservative.
Apple this week released new, thinner 21.5-inch and 27-inch redesigned iMacs; a new MacBook with a unibody polycarbonate design and LED-backlit display; and faster Mac minis, including one new Mac OS X Server option. The company also released a new multi-touch mouse known as the Magic Mouse that will work across the Mac lineup.
Munster said Apple's guidance for the September quarter of $1.70 to $1.78 earnings per share under the generally accepted accounting principles is conservative, though slightly less than usual. However, he said, the release of new Macs so early in the quarter means it is still likely well below what the hardware maker will actually earn.
Piper Jaffray once again reiterated its overweight rating on AAPL stock and has maintained a price target of $277.
Kaufman Bros.
Similarly, analyst Shaw Wu with Kaufman Bros. said that the new iMac and Magic Mouse are the most intriguing products announced by Apple Tuesday. He said the new iMac offers value to consumers and is positioned to be a "sleeper hit."
In his note to investors, Wu said it was particularly interesting that Apple decided to launch so many new products without holding a special event. He called the timing of new products "sooner than expected and somewhat curious."
Wu, also, said the new iMac is poised to provide a boost to the desktop Mac business, which struggled last quarter.
"We believe this refresh will ensure that strong Mac momentum is maintained and allow desktop Macs to once again be a growth business," he said.
In addition, the new Magic Mouse was viewed as another example of "horizontal integration," with Apple employing its multi-touch technology across numerous products. This strategy, Wu said, allows the Mac maker to leverage its research and development investments, and also makes it easier for new customers to learn to use other Apple products.
"We believe the Magic Mouse could serve as a key differentiator for the Mac, bringing its multi-touch technology from its iPhone and iPod touch," he said.
Kaufman Bros. restated its buy rating for AAPL and has maintained a price target of $235.
Piper Jaffray
Following the announcement of new hardware from Apple on Tuesday, Piper Jaffray Senior Research Analyst Gene Munster issued a new note to investors, in which he predicted that the new iMacs will help Apple's desktop market rebound during the December quarter. In the September quarter, desktop Macs saw a year-over-year decline in sales of 16 percent.
"The headwind that existed in the Sept. quarter due to aging Mac desktops has now been turned into a tailwind for Mac units in the Dec. quarter," Munster told investors.
In all, he expects 2.86 million total Macs to be sold in the company's first quarter of its 2010 fiscal year. That would put sales up 13 percent year-over-year -- a number that Munster said could prove conservative, given that total Mac sales of portables and desktops were up 17 percent in the September frame.
Given Tuesday's releases, he believes that Wall Street expectations for Mac sales could also be conservative.
Apple this week released new, thinner 21.5-inch and 27-inch redesigned iMacs; a new MacBook with a unibody polycarbonate design and LED-backlit display; and faster Mac minis, including one new Mac OS X Server option. The company also released a new multi-touch mouse known as the Magic Mouse that will work across the Mac lineup.
Munster said Apple's guidance for the September quarter of $1.70 to $1.78 earnings per share under the generally accepted accounting principles is conservative, though slightly less than usual. However, he said, the release of new Macs so early in the quarter means it is still likely well below what the hardware maker will actually earn.
Piper Jaffray once again reiterated its overweight rating on AAPL stock and has maintained a price target of $277.
Kaufman Bros.
Similarly, analyst Shaw Wu with Kaufman Bros. said that the new iMac and Magic Mouse are the most intriguing products announced by Apple Tuesday. He said the new iMac offers value to consumers and is positioned to be a "sleeper hit."
In his note to investors, Wu said it was particularly interesting that Apple decided to launch so many new products without holding a special event. He called the timing of new products "sooner than expected and somewhat curious."
Wu, also, said the new iMac is poised to provide a boost to the desktop Mac business, which struggled last quarter.
"We believe this refresh will ensure that strong Mac momentum is maintained and allow desktop Macs to once again be a growth business," he said.
In addition, the new Magic Mouse was viewed as another example of "horizontal integration," with Apple employing its multi-touch technology across numerous products. This strategy, Wu said, allows the Mac maker to leverage its research and development investments, and also makes it easier for new customers to learn to use other Apple products.
"We believe the Magic Mouse could serve as a key differentiator for the Mac, bringing its multi-touch technology from its iPhone and iPod touch," he said.
Kaufman Bros. restated its buy rating for AAPL and has maintained a price target of $235.
Comments
I think Apple is in for another record quarter, thanks to the hardware refresh + Christmas.
Also, beware, Apple didn't use safety glass so. If your iMac glass screen breaks it shatters and is razor sharp.
Many still crave a mid sized desk top
Who is "many"? Many on Apple fansites? Which means a minority of a minority of Apple's market.
If there was actually enough demand for it, we might have seen one already. Desktop sales are horrible in the entire industry. Apple isn't going to spend time developing a hole into which they can throw money.
However, I am not going to pay a high premium for the quad core during this economy. I am in Fusion all day long with AutoCAD and while the extra processors would be nice, I don't think this will move those with an aluminum display to move now.
It might entice new buyers though.
I will tell you what would have been nice and made me make a purchase. A quad core in a 13" MBP.
Who is "many"? Many on Apple fansites? Which means a minority of a minority of Apple's market.
If there was actually enough demand for it, we might have seen one already. Desktop sales are horrible in the entire industry. Apple isn't going to spend time developing a hole into which they can throw money.
And who exactly was clamoring for a 16:9 display?? Scientists? Financial analysts? And to offer it without Blu-ray? RIDICULOUS.
Apple's timing with these updates was perfect.
I think Apple is in for another record quarter, thanks to the hardware refresh + Christmas.
Not available until November for the only one worth buying and that's "perfect"? Keep smoking.
Apple isn't going to spend time developing a hole into which they can throw money.
Apple's timing with these updates was perfect.
I think Apple is in for another record quarter, thanks to the hardware refresh + Christmas.
Whether or not the timing was perfect (i.e. air freight costs), Apple is in for another record quarter.
There still looks to be a small MacPro bump in Nov.
Not available until November for the only one worth buying and that's "perfect"? Keep smoking.
Look at the clock, pal. 10 days left til November. The timing IS perfect. Think you're scoring points for these silly negative posts?
Who is "many"? Many on Apple fansites? Which means a minority of a minority of Apple's market.
If there was actually enough demand for it, we might have seen one already. Desktop sales are horrible in the entire industry. Apple isn't going to spend time developing a hole into which they can throw money.
So that settles it, we'll also get rid of the Macbook Pros with discrete graphics and the Macbook Air and the xserve and just have one or two models for very ordinary users. Get off the kool aid and use your head a little bit. Where does Apple play that isn't a niche?
Now these new iMac specs look fantastic! Really cool with a 4-core and all.. but who is it for? Not everybody. For a decreasing number of people I think. I think notebooks are for everybody today. Times have changed.
What about the future? The days of the glorious iMac could actually numbered. Notebooks will cover most computer needs as they get better and better. Then the Mac Mini and Apple TV + HDTV could cover other needs, with upped performance.
Then the Mac Pro for the pros... I guess will sadly get even more expensive since they sell fewer and fewer of them.
And who exactly was clamoring for a 16:9 display?? Scientists? Financial analysts? And to offer it without Blu-ray? RIDICULOUS.
They did go 16:9 but they did it right, you have to give them credit. A 1920x1080 is a high resolution even though it's 16:9. Could be worse, look at all the PC's in the $1100-$1500 range, they are using the 1680x960 res which (and I'm using one) is a little off. HP's are 1920x1080 but they start a lot higher (touchscreen too).
Spreadsheets might actually look and work well in that ratio. I know the medical clinic's I manage, got a call last night about getting in 2 27's for CT,Xray, Ultrasound work... Looks like it hit home with a lot of people.
The blu-ray issue... Not sure why we didn't see that... It can't be licensing because Final Cut supports it, The OS itself supports it (FreeBSD shows support for BR Burning and reading). I think the Codec's for playback may be the issue still or cost/ability to produce enough slot loads. I've got an external coming in, once I know I'll post about it.
That MacMini bump... That was a smooth move though. The top-end Mini is now more than worth the price IMO. And the low end is a bargain. It's a very efficient system that produces desktop performance. A Mini MacPro would be sweet. I'd go for something at $999 with the High End Mini specs, ATI 46xx graphics and Desktop RAM and HD.
I think it interesting that Windows has just experienced it's biggest mis-step in its entire existance with Vista, and Apple gained a wopping 2.5% market share. BTW, that growth has primarily been driven by their gadget market share.
But then, apple would not be able to continue to be apple in the PC world if they gain a significant market share.
Still... very nice. And affordable 8 GB RAM option! They should sell a ton of these.
The prior poster on hoping his insurance comes through with a replacement. Don't hold your breath. I just went through this and I had a very specific business rider that covered a dying Mac and its immediate replacement with State Farm. Long story short, I had an office iMac die. Pushed the power button and nothing. No way to troubleshoot it. It fit all the criteria.
State Farm waffled for 6 months and finally decided to renege on their policy as well as their verbal promise to move quickly on replacement. Final Result? No replacement, but the cost of 'repair' of an ancient iMac G5. After deductible and many hours lost debating on the phone, I ended up with $250 net.
I hope you have better luck. It would be awesome to receive the newer model as replacement!
I'm ordering the beefed up 27" today. There is enough meat there to warrant an upgrade, IMO. I was a little confused about the video where there is much gushing about how the screen goes out to the edges and then disappears. I still see plenty of aluminum and masking on the front.
Still... very nice. And affordable 8 GB RAM option! They should sell a ton of these.
The prior poster on hoping his insurance comes through with a replacement. Don't hold your breath. I just went through this and I had a very specific business rider that covered a dying Mac and its immediate replacement with State Farm. Long story short, I had an office iMac die. Pushed the power button and nothing. No way to troubleshoot it. It fit all the criteria.
State Farm waffled for 6 months and finally decided to renege on their policy as well as their verbal promise to move quickly on replacement. Final Result? No replacement, but the cost of 'repair' of an ancient iMac G5. After deductible and many hours lost debating on the phone, I ended up with $250 net.
I hope you have better luck. It would be awesome to receive the newer model as replacement!
Did you notice 4 ram slots. If I had money I'd get one in a heartbeat.