T wo new Death Knells in one week. That hasnit happened in a while, and it may be a sign that Apple is doing better than it has in a long time. Earlier this week, we rang up Apple Death Knell #32, from repeat offender Rob Enderle. We refer, of course, to our Apple Death Knell Counter that chronicles all of the people who have declared Apple to be dead, dying, on in todayis case, simply running out of steam.
Banc of America Securities has issued comments to the effect it is concerned that Appleis current momentum is being sustained only by upgrade buying, that the iPod has competition, and that the iTunes Music Store (iTMS) wonit add anything to the bottom line. Forbes published the comments in a very brief article:
Apple Computer "runs the risk of generating significant refresh sales to its installed base for the next couple of quarters, and then running out of steam once sales to the installed base are satisfied." The research firm said, "We donit think there is any more creative company in the world than Apple." It also added that Appleis fundamentals are "positive." But Banc of America initiated coverage of Apple at "neutral," saying it was concerned that G5 refresh sales will slow, iTunes wonit contribute to the bottom line and iPod is not "the only game in town anymore."
You can find the full article at Forbesi Web site. As of this writing, Appleis stock is trading at 20.30, down 0.02 (-0.10%), on moderate volume of 3,270,008 shares trading hands.
Thanks to the many Observers who wrote in with a heads up on this article.