ML: "fun new products" a bit light for invitational event
Analysts for Merrill Lynch are the latest to express a lack of fanfare over Apple Computer's new product introductions and are unconvinced that the company's announcements were substantial enough to merit an invitational media event.
"The new Mac mini is an incremental step in the ongoing Intel transition," analyst Rich Farmer wrote in a research note obtained by AppleInsider. "Though the long run prospects for Apple share gains on the Intel platform are likely to be promising, we continue to be concerned about brand risk from potential glitches in the Intel transition as well as delayed availability of native software (Adobe, Microsoft)."
By integrating an Intel graphics processing unit to the petite computer -- instead of the previously used ATI discrete graphics card -- Apple was able to speed up execution in the Intel transition, the analyst believes. But in the long run, Intel's increasing vertical integration into systems components is a strategic threat for the PC ecosystem, including systems vendors, he said.
Meanwhile, Farmer believes the iPod Hi-Fi and leather cases are just the latest examples of Apple's strategy to harvest a greater percentage of the accessories market derived from the booming iPod installed base. According to the analyst, this strategy will likely suit Apple fine in the short term but could create iPod ecosystem risk over time.
"In the long run, however, by competing with its ecosystem partners with increasingly aggressive moves into categories such as speakers and the implementation of an iPod connector license 'tax', Apple risks alienating its ecosystem and creating a margin umbrella that is ripe for disruption from other platforms over time, in our view," he wrote.
Farmer believe Apple's new iPod Hi-Fi boombox offering compares best with the Bose SoundDock digital music system which retails for $299. "For an extra $50 the iPod Hi-Fi product offers battery power capability for music on the go and audio inputs which allow for streaming music if used with the optional Airport Express," he wrote. "The relative quality of audio between the iPod Hi-Fi and the Bose SoundDock is not clear to us."
Overall, the analyst was not overly impressed with the company's new products, of which many believe combined for a lackluster media event.
"We wonder if the announcements were substantial enough to merit an invitational media event and suspect Apple needs to be judicious if it expects to continue to convert journalists into marketing instruments with its aura of secrecy," Farmer wrote.
He said pricing for the iPod Hi-Fi and leather cases suggests Apple believes it can position its accessories at a premium to competing alternatives.
"Sell through will be an important test of the Apple brand," Farmer wrote. "Initial blog activity (an admittedly unscientific measure of customer sentiment) reflected some skepticism."
Merrill Lynch sees Apple stock as neither inexpensive nor expensive. However, the firm sees "insufficient magnitude" to recommend the company's shares at this time.
"The new Mac mini is an incremental step in the ongoing Intel transition," analyst Rich Farmer wrote in a research note obtained by AppleInsider. "Though the long run prospects for Apple share gains on the Intel platform are likely to be promising, we continue to be concerned about brand risk from potential glitches in the Intel transition as well as delayed availability of native software (Adobe, Microsoft)."
By integrating an Intel graphics processing unit to the petite computer -- instead of the previously used ATI discrete graphics card -- Apple was able to speed up execution in the Intel transition, the analyst believes. But in the long run, Intel's increasing vertical integration into systems components is a strategic threat for the PC ecosystem, including systems vendors, he said.
Meanwhile, Farmer believes the iPod Hi-Fi and leather cases are just the latest examples of Apple's strategy to harvest a greater percentage of the accessories market derived from the booming iPod installed base. According to the analyst, this strategy will likely suit Apple fine in the short term but could create iPod ecosystem risk over time.
"In the long run, however, by competing with its ecosystem partners with increasingly aggressive moves into categories such as speakers and the implementation of an iPod connector license 'tax', Apple risks alienating its ecosystem and creating a margin umbrella that is ripe for disruption from other platforms over time, in our view," he wrote.
Farmer believe Apple's new iPod Hi-Fi boombox offering compares best with the Bose SoundDock digital music system which retails for $299. "For an extra $50 the iPod Hi-Fi product offers battery power capability for music on the go and audio inputs which allow for streaming music if used with the optional Airport Express," he wrote. "The relative quality of audio between the iPod Hi-Fi and the Bose SoundDock is not clear to us."
Overall, the analyst was not overly impressed with the company's new products, of which many believe combined for a lackluster media event.
"We wonder if the announcements were substantial enough to merit an invitational media event and suspect Apple needs to be judicious if it expects to continue to convert journalists into marketing instruments with its aura of secrecy," Farmer wrote.
He said pricing for the iPod Hi-Fi and leather cases suggests Apple believes it can position its accessories at a premium to competing alternatives.
"Sell through will be an important test of the Apple brand," Farmer wrote. "Initial blog activity (an admittedly unscientific measure of customer sentiment) reflected some skepticism."
Merrill Lynch sees Apple stock as neither inexpensive nor expensive. However, the firm sees "insufficient magnitude" to recommend the company's shares at this time.
Comments
"Apple risks alienating its ecosystem" with its accessories? I think that's overlooking the sheer SCALE of that ecosystem. Apple couldn't topple that if it tried. They could, of course, push those vendors to compete with better and better things.
Not to mention, I don't think the iPod Hi-Fi (nor the overpriced cases) are exactly targeting the mainstream center of the accessories market. Selling cheap cases with a lot of different styles and functionality might to that--but not a high-end speaker system.
dammit! Don't you dare try to inject common sense and logical thought into this discussion. What the hell are you trying to do man?
I can't wait to hear this "boombox" really looking at pictures does nothing. You have to hear this baby and decide if it's for you or not.
Hell if I like it I might have to stack a LCD on it and us it as my main stereo system. Who knows.
They wanted to get the Mini out as soon as possible. Maybe they couldn't do it for Macworld because of chip shortage. We have discussed that.
By intro'ing it now, they still have almost a month left to the quarter to sell through. They just didn't want to put it out there, they wanted to announce it. Despite what some of these guys said, it IS an important product.
Then they came out with the Hi-Fi. whatever some may think about it, it had to be intro'd as well.
Apple has the problem of having that thing coming up April 1st.
That only gives them a month. If they want to intro products then, what could they do now? Too many products now wouldn't leave enough for what seems to be a big bash.
I suspect that we will see the MacBook UnPro come out at that time. Spring it is supposed to be, and April 1st is pretty Springy. That's a big product as well.
Of course, other stuff will have to come out too.
But these guys were expecting a movie service from Apple. That's what got them into this tizzy.
Originally posted by nagromme
...
Beyond that, the anticipation was irrational, and analysts are as guilty as Mac rumor fans.
...
Indeed there is an old saying:
Sometimes when mind gets
tired, eyes play tricks.
Best i can do for this thread
Like previously reported, it will feature a 13" display, built-in iSight, and FrontRow.
This 13" Intel iBook will replace the current product lines of the 12" G4 PowerBook and the 12" and 14" G4 iBooks. The high-end model may debute with an aluminum exterior, like the current 12" G4 PowerBook.
All this is NOT based on any information/rumors, it is just what would make most sense to me
Originally posted by mk14
The upcoming Intel iBooks (to be announced at a special event on April 18, following Apples tradition on holding these events on Tuesdays, and exactly 7 weeks after yesterday's (yesterday's was 7 weeks after MWSF06)) will have specs similar to the new Mac mini, but the high-end iBook will feature discrete graphics.
Like previously reported, it will feature a 13" display, built-in iSight, and FrontRow.
This 13" Intel iBook will replace the current product lines of the 12" G4 PowerBook and the 12" and 14" G4 iBooks. The high-end model may debute with an aluminum exterior, like the current 12" G4 PowerBook.
All this is NOT based on any information/rumors, it is just what would make most sense to me
I won't address the product specs you described, but are you forgetting the April 1st event? Apple won't (at least I hope they won't) have another event 17 days after the previous one.
Are you reading the posts?
are you forgetting the April 1st event? Apple won't (at least I hope they won't) have another event 17 days after the previous one.
Are you reading the posts?
Sure I do, but there is no evidence at all for such an event.
My predicted date is just based on the time between MWSF06 and yesterday. And: April 1st is a Saturday! Apple always holds their events on Tuesdays; even more: Saturday is weekend!
The new mini looks great and if I needed one I would pick up the high end with dual core in mind. My 1.42 GHz is working great now with 1 GB ram to justify a switch but you never know with me, I guess.
Originally posted by mk14
Sure I do, but there is no evidence at all for such an event.
My predicted date is just based on the time between MWSF06 and yesterday. And: April 1st is a Saturday! Apple always holds their events on Tuesdays; even more: Saturday is weekend!
Hello, April 1 is Apple's 30th birthday, and Steve mentioned it at MWSF. Apple will be doing something for the day, but it would be a natural spot for the next product announcement.
About the mini, I agree that it is a big deal. It's price isn't bad compared to what you got in a mini G4. The inclusion of Bluetooth and WiFi is a significant milestone. (How many $600 PCs include those?) Will people begin to see its value in the days ahead or will the whining over the $100 price point increase and integrated graphics drown it out?
I wish I was there. I'd like to know if Steve try to play up or play down the significance of Front Row with Bonjour? It's hard to tell from the live event coverage.
Finally, I only hope the mini's release is not a signal that Apple's quarter is below its guidance, but simply that it was ready to go. The rumor that Apple was planning multiple release events throughout the first 6 months tilt me towards the latter.
Originally posted by solsun
I do agree that it probably wasn't necessary to hold any type of media event given the products that were announced...
That's one way of looking at it, here's another:
This morning, Apple had the top half of the front page of the business section of the newspaper. Do you think Apple gives a fuck what analysts think? Press coverage is press coverage, and Apple might as well milk it for all it's worth.
https://phobos.apple.com/WebObjects/...st?id=73329937
Originally posted by the cool gut
That's one way of looking at it, here's another:
This morning, Apple had the top half of the front page of the business section of the newspaper. Do you think Apple gives a fuck what analysts think? Press coverage is press coverage, and Apple might as well milk it for all it's worth.
And you see releasing mediocre products with a variety of disappointments just to get press coverage as a good way of doing business? If they keep doing that, they won't keep getting as much press coverage and their fan base will lose interest as well.
I would say that every single product Apple has released in the past 6 months has been filled with disappointments.
No fullscreen (640x480) video on the Video iPod, Lack of Firewire 800 on ALL intel macs so far and likely all future ones as well, cutting the Burn Speed on the MacBookPro in half from 8x to 4x and not being Dual Layer, The thought of Intel Integrated Graphics on ANY Mac makes me sick, and the lack of built in wireless support on the iPod HiFi is dumb imo, who wants to have to have their internet connection a few feet away from their $350 speaker system in order to get wireless information to it???? Not to mention all the bugs and glitches inside all the versions of Tiger, which I don't even see as a significant upgrade over Panther. Along with the fact that Adobe said they won't be updating their products to universal until 2007.
I used to be a hardcore mac-fan and have been a supporter for over a decade now, but I have to say that these past three - six months have been the most lackluster releases since before Mac OSX was released. Aside from the supposed speed increases, it seems like they are going backwards in many aspects.
Usually Apple Product Releases "Wow" me, but the latest releases have "meh'ed" me. Hopefully they will get back on the Wow track once the Intel Transition is over or they better have some crazy ass shit on April 1st.
Originally posted by JohnnySmith
I used to be a hardcore mac-fan and have been a supporter for over a decade now, but I have to say that these past three - six months have been the most lackluster releases since before Mac OSX was released. Aside from the supposed speed increases, it seems like they are going backwards in many aspects.
Usually Apple Product Releases "Wow" me, but the latest releases have "meh'ed" me. Hopefully they will get back on the Wow track once the Intel Transition is over or they better have some crazy ass shit on April 1st.
I have a strong suspicion that the folks at Apple are working themselves to death and making only incremental headway for now. It's easy to go the Microsoft route and "innovate" (aka "stealing") versus the idealistic Apple way of "inventing" the future.
Call me Ishmael, but I think Apple needs to slow down for a while to get back to healthy, slower growth in the company.
Originally posted by SpamSandwich
I have a strong suspicion that the folks at Apple are working themselves to death and making only incremental headway for now. It's easy to go the Microsoft route and "innovate" (aka "stealing") versus the idealistic Apple way of "inventing" the future.
Call me Ishmael, but I think Apple needs to slow down for a while to get back to healthy, slower growth in the company.
Well, Ishmael, I think that Apple has a lot on it's plate right now.
They are doing more things than they ever had to do in the past, and they have to get them all right at the same time. That's quite a challange.
Their main thing is moving to Intel. They are doing that as fast as they can. I hope they can find a way to announce a new NotAPowerMac, er, MacMac Pro, whatever, in June.
None of these machines are the best they can be, as the Army says. But they are a good start. The second gen should wow us.
As for the other things, what can we say? So many products! But I think they will sell well.
There is just so much being said about what Apple will be coming out with that it drives us crazy every time they don't.
But, I think that by the end of the June quarter things will straighten out, and be clearer.