Close
  • Latest News
  • Artificial Intelligence
  • 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
  • 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

    Investment Firm Bullish on New Macs

    By
    Nick Ciarelli
    -
    June 18, 2003
    Share
    Facebook
    Twitter
    Linkedin

      In an endorsement of Apple Computer Inc.s rumored move to 64-bit computing, Needham & Company Inc. today upgraded its rating of the Mac maker from a “hold” to a “buy,” setting a target price of $23.

      In a research note Wednesday from Needham analysts Charles Wolf and Justin Udelhofen, the firm cited an anticipated rebound in Power Mac sales thanks to the new machines as well as improved iPod sales and the forthcoming iTunes Music Store for Windows.

      The report from the New York investment banking and asset-management firm said that “the gigahertz gap between the Power Mac and Windows machines should significantly narrow when Apple most likely introduces new Power Macs running on IBMs 970 processor family” at Apples Worldwide Developers Conference in San Francisco next week. However, Needham noted that the announcements timing brings risk, and that if the processor is not produced until this fall, an Apple release could be delayed. “But its not a question of if, but when,” the analysts said, forecasting that based on past Power Mac releases, the new models wont ship until the fall.

      The research note also cites Web reports in suggesting that the first release of the 970 will run at speeds ranging from 1.4 to 1.8GHz. While the report said this was “still low by Intels standards,” it projected that the 970 could hit 2.5GHz by mid-2004 and 4 to 5GHz by 2005. eWEEK reported on the forthcoming models last week.

      Page 2

      Needham expects the new chip to boost Power Mac sales in the first quarter of fiscal 2004, ending a two-year lull that the analysts blamed in part on the slow rate of performance increase to Motorolas PowerPC G4 processors, which currently drive all Power Macs. the report also noted that the release of QuarkXPress 6.0 was announced for Mac OS X last week, which the analysts expect to boost Power Mac sales among its core market of graphics professionals. Additionally, Needham said it was seeing “surprising strength” in the advertising market for next falls television season, which is expected to boost Power Mac sales to creative markets.

      Citing low margins on music downloads, the analysts said they dont believe the iTunes Music Store will have a short-term material impact on earnings, but they were impressed by sales of the new iPods, for which Apple received 110,000 orders in the first week of availability.

      “Although Apple has not provided subsequent updates on iPod sales, anecdotal evidence indicates that sales have continued at a brisk pace,” the research note said. Needham believes that iTunes will be released for Windows by this fall, followed by an “exponential increase” in downloads at the Music Store. “What were counting on is a corresponding pull-through of iPod sales to Windows users,” the report said.

      The analysts also said that they see the port of the iTunes Music Store to Windows as an abandonment of Apples Mac-only software approach. The report said that this “overdue move” will allow Apple to target a wider market, positioning it as a “digital entertainment company” that can use future digital devices to offset the possibility of poor PC sales.

      Needham also raised its 2003 earnings estimate from $0.22 to $0.24 thanks to the uptick in iPod sales, and its 2004 estimate from $0.50 to $0.60 based on its forecast of higher iPod and Power Mac sales.

      Matthew Rothenberg, managing editor of Ziff Davis Internet, contributed to this report.

      Nick Ciarelli
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      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
      Applications

      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
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      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.
      © 2022 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.

      ×