Peter Burrows of BusinessWeek reports today that "Apple is looking juicier." According to the article, Apple is poised for growth, the iPod halo-affect is finally kicking in, and the iMac G5 could be a driver for increased market share. These factors could give Apple a significant boost in terms of revenue, profits, and the company’s ability to maintain its competitive edge. From the article:
Well, it won’t be anything quite so dramatic. A $1,300 Cadillac in a world dominated by $700 Chevys, the iMac G5 appeals to just 5% of PC buyers, says NPD Group Inc. But the new iMac, along with Apple’s popular notebook computers, could help the company find modest market share gains that could have an outsize impact on sales and earnings. If Apple can boost its global market share in PCs by just a half-percentage point, to 2.5% by 2006, says Piper Jaffray analyst Gene Munster, it could boost revenues over current estimates by 24%, to $12 billion, and earnings by 23%, to $491 million.
That could pay for a whole lot of research and development — crucial if Apple is to keep out-innovating its rivals. "Our primary goal is to make the world’s best PCs," says CEO Steven P. Jobs. "Our secondary goal has always been to make a profit, both to make some money but also so we could keep making those great products."
Mr. Burrows also cites Apple’s growing success with its portable line, and specifically addresses the issue of price vs. market share. There’s more in the full article, which we recommend as a good read.
The Mac Observer Spin:
This report scores direct hits across the board, and we like to see the message of Apple as a healthy, competitive company continue to ring out from the pages of mainstream publications. We’ve been covering a digital ton of such stories in recent weeks, and each one serves to reinforce the notion that Macs are good buys, and that Apple is a healthy company. Those stories should be reaching a broad cross section of the buying public, and that is a Very Good Thing™.