Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Apple
    • Apple

    Bright Days Ahead for Apple

    Written by

    David Coursey
    Published April 14, 2005
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      The first three months of 2005 have been a special time for Apple Computer. If you dont believe it, look at the companys financial results, which were released Wednesday. Among the highlights: CPU sales were up 43 percent from year-ago numbers and iPod sales increased by 558 percent!

      This isnt a column about the iPod, but increasing sales by more than five times (to 5.3 million units) has got to impress. My congratulations to whomever at Apple was able to manage such an increase in manufacturing capacity, parts procurement, and the like.

      To find out more about the happy financials, I called my friend Charlie Wolfe, a securities analyst at Needham & Co., who happily disclosed that when Steve Jobs announced iTunes would be ported to Windows, he bought Apple at $6 per share. Its recently been selling for more than $41 per share.

      Great investments I missed aside, Wolfe is one of the few analysts I really trust. Hes been around forever, and Ive known him almost as long. We dont always agree, but his net worth has mine beat many times over, so you decide.

      Wolfe put it this way: “The company is just kicking ass.” But since he gave me 10 minutes of his valuable number-crunching time—he had a report to get out—I can provide more detail.

      • The 43 percent increase in CPU sales came at the low end: iMacs, eMacs, and minis. The mini represented 225,000 of the 1,070,000 CPUs Apple sold during the quarter ending March 26, 2005. (These are Wolfes estimates.)
      • Sales of the high-end Power Mac desktops slowed considerably. iBook and PowerBook sales both increased, the latter presumably on the strength of sales to professionals who bought a portable to replace or supplement a desktop.
      • Windows users are crossing over to Mac because of security problems with the Microsoft Windows operating system. People are tired of viruses and weekly patches and want something that requires less upkeep.
      • Wolfe said he expected to hear about Windows users buying a Mac to get the iLife creativity suite but has been unable to find those customers. Security concerns, yes; iLife, no.
      • Most of the Mac minis went to Windows users. “Its a killer machine,” Wolfe said.

      Wolfe predicted that Apples worldwide PC market share, now at 2 percent, will double by 2009. Such an increase would be huge for Apple, but it would create barely a blip on Microsofts radar screen. He said this growth will be driven in part by iPod users, 10 to 15 percent of whom will eventually buy a Mac CPU.

      Such growth would translate into a larger marker for third-party Mac software and, with it, the options for business customers. Also, enterprises may find more employees requesting to use a Mac, whether in the office or when working from home.

      Fortunately, features in the upcoming Mac OS X “Tiger,” due April 29, and an update to Microsofts Office for Mac, due this summer, will make it easier for Macs to play on Windows networks. These connectivity improvements will make it easier for IT staffs to accommodate their users Mac-related requests.

      /zimages/6/28571.gifDevelopers, dealers and analysts have given a strong welcome to Tiger. Click here to read more.

      Wolfe was a little dodgy when I asked whether Apples growth now has nowhere to go but down. CPU growth should continue, he said, while music-player growth may slow. Year-to-year growth of 500 percent rarely continues for long.

      Nevertheless, Wolfe predicted Apple still has brighter days in its future and its my inclination to agree. My hope is that Apple will leverage its consumer success into growth in business markets, too. But that may require as much a grassroots effort—people taking Macs to work and using them to work from home—as anything Apple can do directly.

      /zimages/6/28571.gifFor insights on the Mac in the enterprise, check out eWEEK.com Executive Editor Matthew Rothenbergs Weblog.

      It may seem odd that success with an MP3 player is helping Apple gain CPU share. Such a thing would be unthinkable, I suppose, at any company but Apple. But no company is at the intersection of computing and consumer electronics in the way Apple is today and will likely remain for the foreseeable future.

      /zimages/6/28571.gifCheck out eWEEK.coms for the latest news, reviews and analysis on Apple in the enterprise.

      David Coursey
      David Coursey
      One of technology's most recognized bylines, David Coursey is Special Correspondent for eWeek.com, where he writes a daily Blog (blog.ziffdavis.com/coursey) and twice-weekly column. He is also Editor/Publisher of the Technology Insights newsletter and President of DCC, Inc., a professional services and consulting firm.Former Executive Editor of ZDNet AnchorDesk, Coursey has also been Executive Producer of a number of industry conferences, including DEMO, Showcase, and Digital Living Room. Coursey's columns have been quoted by both Bill Gates and Steve Jobs and he has appeared on ABC News Nightline, CNN, CBS News, and other broadcasts as an expert on computing and the Internet. He has also written for InfoWorld, USA Today, PC World, Computerworld, and a number of other publications. His Web site is www.coursey.com.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×