American Technology Research analyst Shaw Wu on Wednesday issued a new research report in which he noted that Appleis Tuesday release of Mac OS X v10.4.5 fixed "the well-publicized video glitch with Front Row software on an INTC-based iMac. This is in-line with our expectation that this would be a software fix and not a hardware component problem that many feared would require a recall," he said.
Mr. Wu also noted the MacBook Pro is shipping "ahead of speculation that it may be delayed until April." In addition, the analyst said: "In our proprietary checks with industry and channel sources, we are picking up that INTCis yields have improved, enabling AAPL to ship more high-end Core Duo systems. In addition, our checks indicate that MacBook Pros are in stock at key distributors and many AAPL stores while others are en route to fulfill pre-orders."
Assessing Appleis long-term outlook, Mr. Wu sees the Intel transition as an ongoing risk until itis completed. "We believe it is in AAPLis best interest to migrate the rest within 1-2 quarters as selling two processor families and marketing one as superior to another adds to customer confusion and isnit a sound long-term strategy," he wrote.
The analyst reiterated his "Buy" rating on the stock. "We continue to believe that AAPLis fundamentals remain sound and arguably among the strongest in technology, but negative investor sentiment and its weak technicals may indicate further share price downside," he said. "Absent of technicals, for longer term fundamental investors, we would take advantage of the pull-back to build and/or add to AAPL positions."
While Apple shares have taken a beating recently, they have been on the upswing since Tuesday. At 1:32 PM EST on Wednesday, Appleis stock was selling for US$68.85, up $1.21, or 1.78%, for the day.