Featured Article: Editorial - Mac's Market Share and the Cascade Failure of Windows
CNN: Crouching Tiger, Hidden Profits?
by , 1:00 PM EST, March 30th, 2005
The next major upgrade to Mac OS X, Tiger, could be a big source of profits to Apple for the rest of fiscal 2005, according to a CNN editorial. Quoting several analysts, Paul R. La Monica wrote that the profits from Apple's software sales could receive a big boost from Tiger, and that this was in addition to the company's ability to innovate, growing Mac sales, and its huge cash horde, all of which are also reasons to invest.
With Apple being one of only three tech stocks showing double digit stock growth in 2005, it's also one of the only games in town, according o Mr. La Monica.
For the past six months, the driving vehicle for growth has been the iPod, but Mr. La Monica said that Tiger could be the surprise area of growth in the near future.
Mr. La Monica cited one analyst who talked up Apple's software side as a major source of gross margins and profits, and another who said he thinks that Tiger will not only sell well itself, but that it will also drive a round of hardware upgrades of Macintosh computers.
He also quoted a third analyst who was bullish on Apple because even a small increase in market share for the company would translate into a big boost to its bottom line.
The full article goes into much more depth on these issues, as well as Apple's commitment to innovation and other factors that he said make the company's stock attractive.
Apple stock is trading higher today in moderate volume.
*In the interest of full disclosure, the author holds a small share in APPL stock that was not an influence in the creation of this article.
If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.
Observer Comments
Wed Mar 30, 2005 2:44 pm Subject: Mac Mini Owners Will Need Memory Upgrade
QuoteRealityCheck wrote:
Wait till unsuspecting newbies to the Mac platform try to cram Tiger into their shinny new Mac mini. With the standard 256MB memory, Tiger will bring their shinny new toy to a standstill. Check the facts:
http://www.appleinsider.com/article.php?id=945
Hmm, I can't seem to find that "fact" anywhere in that link. I see the part where future machines will have better hardware and that future software will work better with better hardware.
As SHOCKING as those facts are, I didn't see anything about Tiger not being able to work with a Mac mini.
QuoteRealityCheck wrote:
Wait till unsuspecting newbies to the Mac platform try to cram Tiger into their shinny new Mac mini. With the standard 256MB memory, Tiger will bring their shinny new toy to a standstill. Check the facts:
http://www.appleinsider.com/article.php?id=945
Must be a slow day in "RealityCheck" land.
Wed Mar 30, 2005 2:59 pm Subject: Small White Car - Please Read More Carefully
Wed Mar 30, 2005 3:08 pm Subject: Re: Small White Car - Please Read More Carefully
QuoteRealityCheck wrote:
According to the article, Apple insiders said for Tiger and iLife a memory upgrade is "much needed." This is corporate speak for your machine will be total dog unless you upgrade.
I kind of figured they're trying to sell their product and make more money. But if you trust what corporate executives say 100% (even those at Apple!) well, more power to you.
That aside, the consumer has SOME responsibility to know what they're buying, you know. If someone went out and bought a Dell with 256 MB of memory I'd bet they wouldn't be thrilled with that performance either. At some point you have to blame the comsumer for looking at the fact that they can double their RAM for $75 and saying "Nah...I'm not gonna be doing that."
Wed Mar 30, 2005 3:12 pm Subject: RC - Please Use Real News Sources and a Spell Checker
There's an awful lot of folks running older hardware who are waiting to upgrade because they see no need to spend money on hardware now and money on the OS later (yeah, Apple's history is flakey on upgrade pricing). When Tiger's release date is announced and the upgrade policy is established, the mini sales will skyrocket.
QuoteMonkeyT wrote:
There's an awful lot of folks running older hardware who are waiting to upgrade because they see no need to spend money on hardware now and money on the OS later ... When Tiger's release date is announced and the upgrade policy is established, the mini sales will skyrocket.
True. But, I think the opposite is also true.
I saw some stats a while back that were absolutely staggering. I forget the exact percentage now, but IIRC, a significant majority of computer purchasers never "upgrade" their OS.
In other words, if those stats are correct, those who are buying a Mini and are in the target market for the product (ie: new Mac user and a low-end user) than half to 3/4s won't have an interest in upgrading to Tiger. Obviously, that still leaves a large number of people who are going to be upset that they bought the computer only to have the OS outdated rapidly.
That said, I'll bet a lot of them know that Tiger is coming becuase the Mini isn't the first thing that's gotten them interested in Apple ... it's just what finally pushed the purchase. Of course, they're Windows users, so none of them will actually believe that Tiger will ship as promised since they've been "expecting" Longhorn for half a decade now.
The people, IMO, who will be upset are current Mac users (or returning Mac users) who have replaced an older machine. Probably half of them know that Tiger is coming and figure they'll have to pay for it ... but they'll whine anyway just cuz they like to complain.
Quotedux5 wrote:
I saw some stats a while back that were absolutely staggering. I forget the exact percentage now, but IIRC, a significant majority of computer purchasers never "upgrade" their OS.
I believe that. I think that for many people, this habit can be traced back to early versions of windows.
My mother is fearful of every upgrading anything on her computer because during that time period, an upgrade often meant that a printer or a scanner would no longer work with a newer OS. This was usually the fault of the device makers not updating drivers, but the result was that an OS upgrade meant weeks of trying to get everything to work right again.
That doesn't happen too much anymore (with Macs OR with Windows) but that was a hard learned lesson that's hard to un-learn.
Not wanting to pay the price to upgrade is one reason, but I think "fear of changing anything" on a computer is still a big reason, even if it's not a problem any more.
Wed Mar 30, 2005 4:43 pm Subject:
QuoteRealityCheck wrote:
Wait till unsuspecting newbies to the Mac platform try to cram Tiger into their shinny new Mac mini. With the standard 256MB memory, Tiger will bring their shinny new toy to a standstill. Check the facts:
http://www.appleinsider.com/article.php?id=945
Hmmm...
Here are Microsoft's Longhorn hardware recommendations:
Desktop CPU: 3 GHz Intel Pentium 4 processor with HyperThreading Technology 530 (or higher) or 3 GHz Intel Xeon processor with 2 MB L2 cache, or AMD Athlon 64, Sempron, or Opteron 100, 200, or 800 processor, single or dual-core versions.
Mobile CPU: 1.86 GHz Intel Pentium M processor 750 (or higher), or AMD Turion 64 Mobile Technology, Mobile Sempron, or Mobile Athlon 64 processor.
RAM: 512 MB of RAM or more, all platforms.
Source: http://winsupersite.com/showcase/longhorn_preview_2005.asp (ummmm... Paul Thurrott's site!)
Wow. I don't see Dell's $399 desktop machine having a prayer at running the next generation of Microsoft's OS.
Wed Mar 30, 2005 5:27 pm Subject: I think RC knows the truth
Retailers love computers with 256 memory as they can sell upgrades. Dell, not being sold in stores, uses their 256 as SHARED memory - don't they RC? By now even RC knows that he can buy a Mac with 256 and then get a gig stick from a 3rd party supplier - and a putty knife if he gets a Mac mini.
Tiger will also work on a lot of older Macs where Longhorn will need some hefty investments in hardware for many. The mass of code in Longhorn will probably result in two versions - pro and home - just so it can run on the lower priced computers. Because Tiger doesn't have all the slop Longhorn will have Mac users can use the full version.
When you buy Tiger you will get the full OS - not an upgrade. How will MS handle that? Probably with an upgrade that costs more than Tigers probable $129 price for the full version.
Personally I have to buy the Family Pack when tiger comes out as I now have 5 Macs that will get moved up - the oldest ones being a 667 PB and a 500 iBook. That's about $50 per computer (less educational discount). Is MS going to do anything like that, or are they still back in the 3.1 days?
Wed Mar 30, 2005 5:30 pm Subject: I think RC knows the truth
Retailers love computers with 256 memory as they can sell upgrades. Dell, not being sold in stores, uses their 256 as SHARED memory - don't they RC? By now even RC knows that he can buy a Mac with 256 and then get a gig stick from a 3rd party supplier - and a putty knife if he gets a Mac mini.
Tiger will also work on a lot of older Macs where Longhorn will need some hefty investments in hardware for many. The mass of code in Longhorn will probably result in two versions - pro and home - just so it can run on the lower priced computers. Because Tiger doesn't have all the slop Longhorn will have Mac users can use the full version.
When you buy Tiger you will get the full OS - not an upgrade. How will MS handle that? Probably with an upgrade that costs more than Tigers probable $129 price for the full version.
Personally I have to buy the Family Pack when tiger comes out as I now have 5 Macs that will get moved up - the oldest ones being a 667 PB and a 500 iBook. That's about $50 per computer (less educational discount). Is MS going to do anything like that, or are they still back in the 3.1 days?
Wed Mar 30, 2005 11:28 pm Subject: guide to upgrading
For the Guest waiting to switch. MacRumors has a nice buyers guide that gives a rough estimate of when new macs may come out. Very handy:
http://buyersguide.macrumors.com/
Recent Headlines - Updated Tuesday, July 8th, 2008
- Tue., 6:55 PM
- User Friendly Blog by Ted Landau - Why User Interface Design Matters
- 4:30 PM
- Apple Trackpad Secrets and Technical History
- 4:05 PM
- iPodObserver - Apple: What to Bring When Buying iPhone 3G
- 3:35 PM
- Microsoft: We Have a Noisy Competitor
- 2:50 PM
- Columnist: Safari Security Fails to Learn from Past
- 2:20 PM
- iPodObserver - Services to Unlock Mobile Phones Gaining Momentum
- 1:00 PM
- Daylite 3.7.4 Adds iWork 08, Dialectic Integration
- 12:20 PM
- FoneLink 2.1 Adds Support for More Cell Phones
- 11:25 AM
- Freeway 5.1.3 Adds Chinese Support
- 11:10 AM
- iPodObserver - Rumor: Canadian Apple Stores Won't Sell iPhone 3G
- 10:35 AM
- Microsoft Aligns with Icahn for Yahoo Takeover
- 10:00 AM
- Hot Forum Topic - Is Internet Killing the Video Star?
- 8:20 AM
- iPodObserver - MobileMe Launches on July 10
- 7:55 AM
- iPodObserver - Apple: iPhone 3G Launches at 8AM Friday
- 6:00 AM
- iPO Review - BudFits
The Mac Observer Reader Specials
- Download Typestyler, still the Ultimate Styling Tool for Internet, Print and Video Graphics. Works great in Classic with a Native OS X Version on the way. Free Tryout: www.typestyler.com
- OWC: Upgrade to a Larger Hard Drive, Add Additional Drives SATA for Mac Pro and G5s, up to 1.0TB in each Bay. 500GB from $90!
MacBook/MacBook Pro / MacMini / iMac Intel Core2 DUO DDR2 667Mhz 4GB Kit $84, 3GB Kit $60, 2GB Kit $40 1GB $20. Click to Maximize your Macs...
Mac observers can now play Party Poker for Mac as well as Mac casino games by going to MacPokerOnline.com.
RamJet Memory: MacBook 1Gig $39, 2Gig $78, 4Gig $195! Mac Pro 2Gig $115, 4Gig $189! 500G Seagate SATA II $139! Click hereFor the latest Apple products use Ciao a comparison website to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate cell phones.
Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.

