PDA

View Full Version : Apple lower as growth is questioned


MacBytes
Feb 7, 2006, 12:54 AM
http://www.macbytes.com/images/bytessig.gif (http://www.macbytes.com)

Category: Opinion/Interviews
Link: Apple lower as growth is questioned (http://www.macbytes.com/link.php?sid=20060207015436)
Description:: AAPL falls to its lowest level since Dec. 1, 2005 amidst doubts about the company's ability to maintain its aggressive growth.

Posted on MacBytes.com (http://www.macbytes.com)
Approved by Mudbug

autrefois
Feb 7, 2006, 02:25 AM
You mean Apple's profit isn't going to increase nearly 400% every year? This is a surprise to people?? :confused:

I guess going from 400% growth to "only" 50% growth is a big change, but it seems kind of silly to me that people are apparently just now realizing that with the Intel switchover and all, Apple might not keep up that rate of profit growth forever.

Little Endian
Feb 7, 2006, 06:56 AM
I have Apple Shares and the drop is quite disturbing. From a high of $86 in early Jan to $67 in after hours trading as of Monday. Apple has pretty much done nothing but drop since MWSF. The quarterly Earnings Call after MWSF only increased selling further. The bad thing about rapid growth and impressive profits is that investor expectations become increasingly demanding.

I still can't decide if I should create a new position in Apple. I am currently down 10% with my current position on Apple anyone have suggestions?

I also feel that Apple's ahead of schedule and rapid transition to Intel is a bad thing. Mac sales will drop for the next fiscal quarter and may vary well fall short for this year failing to beat last year sales. I think most Pro Users and institutions will hold off on buying an intel based Mac until late this year or even next year. While a rapid transition is for the better good it is bad if it hurts immediate sales.