The next major upgrade to Mac OS X, Tiger, could be a big source of profits to Apple for the rest of fiscal 2005, according to a CNN editorial. Quoting several analysts, Paul R. La Monica wrote that the profits from Apple’s software sales could receive a big boost from Tiger, and that this was in addition to the company’s ability to innovate, growing Mac sales, and its huge cash horde, all of which are also reasons to invest.
With Apple being one of only three tech stocks showing double digit stock growth in 2005, it’s also one of the only games in town, according o Mr. La Monica.
For the past six months, the driving vehicle for growth has been the iPod, but Mr. La Monica said that Tiger could be the surprise area of growth in the near future.
Mr. La Monica cited one analyst who talked up Apple’s software side as a major source of gross margins and profits, and another who said he thinks that Tiger will not only sell well itself, but that it will also drive a round of hardware upgrades of Macintosh computers.
He also quoted a third analyst who was bullish on Apple because even a small increase in market share for the company would translate into a big boost to its bottom line.
The full article goes into much more depth on these issues, as well as Apple’s commitment to innovation and other factors that he said make the company’s stock attractive.
Apple stock is trading higher today in moderate volume.
*In the interest of full disclosure, the author holds a small share in APPL stock that was not an influence in the creation of this article.