Steve Fortuna
Steve Fortuna
apple demand evidence investors market pc unto
In our opinion, investors should not read this Apple blowup as evidence that PC demand is weak. Apple is, in many ways, a market unto itself.
billion external number player recently roughly run selling separate six storage
Dell recently established a separate storage business... Dell has only been selling external storage for about two years, and it is already the number six player in the market, with roughly a $1 billion run rate.
apple couple cycle driven existing good growth largely past upgrade view
Our view is that Apple has had very good growth over the past couple of years, largely driven by upgrade cycle to its existing installed base.
almost drive expansion expect fourth growth helping margin operating percent quarter quarters recorded revenue second third
We see revenue growth accelerating to almost 16 percent in the second half, helping to drive operating margin expansion from the 4.5 percent recorded in first quarter 2000, and the 5.4 percent that we expect this quarter, to 6.3 percent and 8.2 percent in the third and fourth quarters respectively.
additional base clearly coming company consumer cycle experience fact focus gateway growth itself point problems reinvent related upgrade
We see the upgrade cycle as clearly fatiguing at this point and I think the experience in consumer slowdown and weakness, as is with Gateway and others, but Apple's got some additional problems that are more Apple-specific and are related to the fact that a lot of the growth coming from the installed base is now drying up and the company really has to reinvent itself now and focus on new products.
good line results
We think these results are good, in line with our expectations, and think we are set up for a good 4Q,
appeal based believe consumers cube few users
We believe that the Cube is too pricey at $1,799 to appeal to consumers in volume, while few professional users are going to opt for the Cube based on its award-winning design.