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RVB's Market Musings

What began here as an avenue to interact and learn has far exceeded those goals.

If you are a prospective employer, please consider this site a place where you can see my passion for investing...

Monday, June 06, 2005

Apple Computer

I wanted to share a recent email conversation regarding Apple Computer:
May be worth investigating or just buying.... It may be time to pick up Apple (AAPL). Have you heard? Apple announced today they are going to base their next product on Intel. (Early next year) Why? Because basically, Microsoft can't seem to figure out how to tap into the electronic Movie sharing business...ala iPod... Apple has this technology but has always lacked the ability to keep up with its own software development. Now that it will be in the "Intel channel" it automatically gains "par" compatibly with mainstream software developers. Instead of "Little" Apple Software Eng, they now will be able to use the existing software development model that gives Microsoft the "Width" in the industry that has allowed it to dominate the PC software market. Think of it... A PC or MAC? Hardware is simply a commodity these days. Its the software and O/S that drives the PC market.


Mac OS running on Intel? Get ready to buy your (First) Mac! This combination of products will blow away the Windows O/S/Intel "Bloatware" configuration. I will be going back to Mac!

Note: Other small software companies that produce streaming videos may also see a jump.

View my response:

I did hear about it this morning on CNBC while drinkin' my morning cup o' joe...

Apple down 0.32. Investors aren't too excited. Don't get too hopped up on the news...this will probably make apple more price competitive...and could be the break they need to gain market share...but let it work itself out first. Financially the company will take some time to prove itself via this move. They're not going to gain 10% market share next week, or even next month. It's a great move, competitively, though...and means AAPL can be right in the future, perhaps. However, AAPL's stock price right now is MUCH more tied to beating iPOD expecations and the iPOD's success...and iPod sales seem to be slowing.

My style isn't very speculative...I like to watch and see if things are working before buying. How about instead of buying, we just put it on a shopping list, and if someday it looks right, then we go.

BTW - apple was soooooooo right last year. Now its awfully hard to figure out.



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