Shaw Wu: MacBook is Worthy iBook Successor

| Apple Stock Watch

Shaw Wu of American Technology Research (ATR) was pleasantly surprised by the release of the MacBook on Tuesday. He sees the new Intel-based laptop as a worthy successor to the iBook G4, and says the MacBook "screams iPod companion."

Based on ATRis earlier research, the MacBook came to market a month or two earlier than expected, which is good news since it will be available for the July education buying season. Based on its competitive price and features, Mr. Wu feels the MacBook is also focused at Windows switchers and main-stream consumers. The MacBook may even become the top-selling Mac model.

ATR is concerned about the US$1,499 price of the black MacBook, however, fearing that it may be too high. The capabilities of the MacBook may also cannibalize MacBook Pro sales, although pro users may find the smaller screen size and embedded graphics processor too limiting, helping to curb sales losses to the consumer machine.

Based on the current Mac line up, Mr. Wu predicts that Apple will probably hit or exceed its projected $4.2-4.4 billion in revenue and $0.39-0.42 in EPS. ATR is maintaining its "buy" rating and $101 price target for Apple.

Apple stock is currently trading at $65.06, down 0.20 (0.31%).

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