BusinessWeek Report: "Apple Is Looking Juicier"

September 30th, 2004 at 3:00 PM - News by Bryan Chaffin

Peter Burrows of BusinessWeek reports today that "Apple is looking juicier." According to the article, Apple is poised for growth, the iPod halo-affect is finally kicking in, and the iMac G5 could be a driver for increased market share. These factors could give Apple a significant boost in terms of revenue, profits, and the companyis ability to maintain its competitive edge. From the article:

Well, it wonit be anything quite so dramatic. A $1,300 Cadillac in a world dominated by $700 Chevys, the iMac G5 appeals to just 5% of PC buyers, says NPD Group Inc. But the new iMac, along with Appleis popular notebook computers, could help the company find modest market share gains that could have an outsize impact on sales and earnings. If Apple can boost its global market share in PCs by just a half-percentage point, to 2.5% by 2006, says Piper Jaffray analyst Gene Munster, it could boost revenues over current estimates by 24%, to $12 billion, and earnings by 23%, to $491 million.

That could pay for a whole lot of research and development -- crucial if Apple is to keep out-innovating its rivals. "Our primary goal is to make the worldis best PCs," says CEO Steven P. Jobs. "Our secondary goal has always been to make a profit, both to make some money but also so we could keep making those great products."

Mr. Burrows also cites Appleis growing success with its portable line, and specifically addresses the issue of price vs. market share. Thereis more in the full article, which we recommend as a good read.