This reinforces what I have been saying here. I still don’t think AAPL is a buy here but if you are already long the stock, just hold on.
The thing is, we all knew iPod sales were going to be good because it’s a typical Christmas gift that nearly everyone can afford. However, iPods aren’t going to carry this company alone and they are going to need to focus on what their core business and products are. That means the Mac. The iPhone isn’t even a factor yet because it’s not available until June. Unlike the PC business, Mac users don’t upgrade as often. Partly because they don’t need to, but mostly because it means buying a whole new box and operating system. Not a lot of people buy whole new computers for christmas gifts.
So what does Apple have on the horizon besides the iPhone? Well, honestly not much. If you followed the MacWorld announcements, you know they have the Apple TV coming out which will broadcast from the unit wirelessly to your TV. They also announced the Airport Extreme which uses the new 802.11n specification for wireless communication. Lastly, they have another partnership for iTunes to deliver movies from Paramount. Not a groundbreaking effort but it does expand their offerings which they will need to compete with the likes of Netflix, Movielink and others.
So bottom line, if you have Apple already, hold on to it. If you are looking to pick up Apple I think you should wait for a pullback to between 80-85, possibly even 75.
At the time of this publication, Mr. Wilcox had no position in any stocks mentioned.
