The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Analyst: Photoshop CS3 to Drive Pro Mac Sales

Analyst: Photoshop CS3 to Drive Pro Mac Sales

by , 7:50 AM EST, January 24th, 2007

The public beta of Adobe Photoshop CS3 is receiving positive feedback, and will likely have a positive impact on pro level Mac sales, according to Piper Jaffray analyst Gene Munster. He noted that the lack of an Intel-native version of Photoshop has been holding back many pros from upgrading from G4 and G5 Macs.

Mr. Munster commented "According to our compilation of data from 83 Photoshop beta testers the feedback has been positive; 71 percent of beta users were 'very satisfied' and 17 percent were 'satisfied.'" The remaining 12 percent responded with "neutral."

Adobe is expected to release Photoshop CS3 and the rest of its Creative Suite 3 product line as Universal Binary applications that run natively on Intel and PowerPC-based Macs some time in April. As graphic pros upgrade to the new version of Photoshop, there is a good chance that they will also upgrade their aging workstations to current MacPro and MacBook Pro models.

"We believe that the success of the Intel-optimized CS3 will drive sales of Apple's pro-level computers, as Adobe creative pros ( about 15 percent of the Mac user base) are waiting to buy Intel machines until CS3 is released," he said.

The anticipated surge in Mac sales is expected to result in a 9 percent upside in Piper Jaffray's fiscal year 2007 EPS of US$1.45, and does not include any additional positive impact from Mac sales to outside of the current Adobe user base. The boost in sales could increase the Mac's market share by about 1 percent for calendar year 2007, representing an average market share increase from 2.4 percent in 2006 to 3.5 percent in 2007.

Mr. Munster is maintaining his "Outperform" rating and target price of $124 for Apple stock. Apple is currently trading in the pre-market at $86.35, up0.65 (0.76%).


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Digg!

Recent TMO Headlines - Updated December 5th

Mon, 3:00 AM
A Mixed Reality and Mailbag Monday - TMO Daily Observations 2022-12-05
Fri, 3:25 PM
New Teaser Video for Apple TV+ Gives Audiences a Peak at 2023 Programming
Fri, 2:28 PM
The Retro 67 Charger from Shargeek Rocks Retro Looks with Modern Functionality
Fri, 1:32 PM
Travelin' Tim Goes to Arizona, iPhone Production Woes and More
Fri, 1:20 PM
Season Two of 'Slow Horses' Now Streaming: How to Watch the Espionage Comedy on Apple TV+
Fri, 12:59 PM
Apple Releases New Betas for iPhone, iPad, Mac and More
Fri, 12:32 PM
Gurman: 'realityOS' for Apple's New Mixed-Reality Headset Changes Name to 'xrOS'
Fri, 12:12 PM
Apple's Emergency SOS Via Satellite Feature for iPhone 14 Saves A Stranded Man in Alaska
Fri, 11:59 AM
Coinbase Claims Apple 'Blocked Its Last' Wallet iOS App Release Following New Policy on NFTs
Fri, 3:00 AM
But Just Wait 14 Months - TMO Daily Observations 2022-12-02
Thu, 4:51 PM
Opening an Apple Card This Holiday Season Can Net 5% Back on Apple Purchases
Thu, 3:13 PM
Concerns in China and More On the Terrible Craziness That Is Twitter These Days
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Daily Observations
  • TMO on Twitter!