In my humble opinion, I saw little compelling reason for existing Mac customers to pick up new hardware this quarter, other than the usual need to upgrade systems.  Did Fred Anderson build this picture into Q2 guidance? Or have expectations been inflated by Q1 numbers, despite seasonality trends (e.g. 730,000+ iPods sold, a tough act to follow)?  And how well can Apple do in the absence of core product releases and killer apps/products (iPod mini aside)?

Mav, I think Q2 is a transition quarter. Reports indicate Apple is working down inventories on a few products which may indicate either pending product refreshes or Apple is satisfied with the quarter and desired to bring down channel inventories for Q3 replenishment.

The G5 line needs a refresh to either the 2.5 GHz or 3.0 GHz and a few pipeline improvements and the iMac line needs an overhaul IMHO.

That said, the iPod line is throwing off big numbers and should help the company meet or slightly exceed Q2 targets IMHO.