Analyst: Apple Took Microsoft By Surprise
Analyst: Apple Took Microsoft By Surprise
by , 11:35 AM EDT, September 15th, 2006 - Digg This
American Technology Research analyst Shaw Wu doesn't think that Microsoft's Zune media player poses a big threat to Apple and the iPod, and that pricing and availability information was withheld because Apple's revised iPod caught the company off guard. Microsoft announced the specifications for its Zune music and video player on Thursday, two days after Apple introduced the enhanced fifth generation video capable iPod.
Mr. Wu commented "[Zune] pricing and timing were not revealed likely because our sources indicate that Apple's aggressive pricing at US$249 for its new 30 GB vPod took Microsoft by surprise. We believe Microsoft is re-thinking its pricing strategy amid potential wider losses to stay competitive in the marketplace."
The Zune player specifications didn't offer any features that make the product stand out from the competition. On that point, Mr. Wu said "We remain under whelmed with the much-hyped Zune, which is essentially a repackaged Toshiba Gigabeat, with limited differentiation vs. existing Windows Media devices."
Unfortunately for Microsoft's partners in the digital music player market, Apple will remain essentially unscathed while they take the brunt of the Zune's market impact. Companies like Creative, Archos, SanDisk and iRiver will see their marketshare erode as customers buy the Zune instead of other iPod competitors.
Mr. Wu is maintaining his "Buy" rating for Apple with a target price of $91. Apple stock is currently trading at $73.81, down 0.36 (0.49%).
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Observer Comments
QuoteGuest wrote:
Where do you get your hands on his research? Does briefing.com have it?
These guys make public commnents to get your attention, then they (or their employers) will be glad to sell you the full report--or, did you think that the report would be free? It might not be worth very much, but it's not free.
QuoteGuest wrote:
Come on, that's not helpful. And I'm not poor.
Neither Biff or I have bothered to look up the exact price NOR do we know how much money you have, but we don't need to.
These types of reports generally cost a couple of thousand dollars. I feel equally as sure as Biff: If you have a few thousand bucks to drop on something like this then you would be the sort of person who would already know where to get them from.
We're not being "helpful" because we don't know the answer to your question and I don't think I'll know that answer any time soon, either. It's not something on my shopping list!
Exactly. Thats the important part. Most analyst reports are just bad predictions based on misinterpretation of the same rumors and news stories we all read. Although, to be fair, Mr. Wu seems to be of a much higher caliber than other Apple related analysts.
Edit:
I'm not going to look up the details of Mr. Wu's company's business relations, but I will quickly tell you how these reports are typically obtained. They are usually bought as "research" by very large investment firms through a brokerage. The brokerages are the ones who typically do the actual work of finding and selling shares of stock for the investment companies. The investment company pays the brokerage for its services and the cost of obtaining the research is typically spread out as part of the cost of executing trades on millions of shares each day. Thats why these reports cost thousands of dollars. That's just a drop in the bucket. These are not for mortal people.
Fri Sep 15, 2006 8:13 pm Subject:
Zune has no chance in the market. Neither does the PC, it's all over it's Apple's industry now, and everyone else is just trying to compete with them.
When you think of it, it's always been that way. The only reason IBM did the PC was Apple was making a killing off the Apple II. The only reason M$ did windows was to compete with Apple for the Mac (Bill knew if he didn't that there would be no way DOS could compete with it for long). Now, M$ is desperately trying to catch up with the iPod. So, they farmed out the job to Toshiba much like IBM did to M$ in the old days.
It's too late, game over, thanks for playing...
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