Analyst: Windows 7 Could Provide Apple an Opportunity to Gain Traction

| Apple Stock Watch

Microsoft's release of Windows 7 last week could provide Apple an opportunity to gain additional traction, according to the reasoning of Barclays Capital analyst Ben Reitzes. In a research note obtained by The Mac Observer, Mr. Reitzes said that the need for a clean install for the new OS is likely to cause many Windows users to wait until they buy a new system, which could work to Apple's benefit.

"Our checks in retail indicate that there was not a lot of pent up consumer demand for PCs preloaded with Microsoft 7 as consumers were given 'free upgrades' for PCs purchased since this summer," Mr. Reitzes wrote. " In addition, as users of XP may require a clean install for Windows 7, we believe many will just wait until they need a new system to upgrade which could provide Apple an opportunity to gain additional traction."

Mr. Reitzes also estimated that Apple would see 22% year-over-year unit growth during the December quarter (Apple's 1st fiscal quarter), for sales of 3.07 million Macs, which would be a record. Apple set the current record of 3.05 million Macs during the September quarter, which it reported last week.

The analyst reiterated his "Overweight" rating for the stock, which means he expects it to outperform the PC sector, and maintained his price target of US$235 per share.

Shares in Apple lost ground Tuesday, closing at $197.37, a loss of 5.11 (-2.52%), on moderately strong volume of 26.9 million shares trading hands.

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  


Constable Odo

Quit joking around.  As long as the old-guard IT manager is around there is zero chance of getting a Mac on a corporate desktop even if Windows 7 was truly crap.  There is only one safe for for any IT manager to go if he wants to keep his job safe and secure.  Dell, Windows OS and Microsoft Office.  That will never change.  I’d heard a rumor that there are some companies asking employees what brand of computer they want to use.  I don’t believe it.  Mr. IT manager will try to convince the bean counters that Macs are too expensive and it will cost MORE money just to get them to work within the Windows PC environment and end up with less productivity.

Windows 7 is safe from any Mac attacks in the corporate world.  Home computer consumers are a different story.  If a buyer looking for a new computer has extra money to spend or even cares about the extra quality a Mac might offer there’s a chance they might choose Apple.  Though I wonder if they go to a Best Buy, will the salesperson try to steer them to a Windows PC instead of a Mac.  Heck, in the couple of years that Vista was the only game in town, it doesn’t appear that Apple gained much traction at all.  Microsoft seems to be sitting pretty and safe with Windows 7 ready to go.  Apple will just have to keep slugging it out one day at a time to convert Windows users.  Very slow going indeed.  Apple is going to have to do an end run with the tablet to score some major goal.


This analyst is really late to the party here. Apple’s own marketing analysts figured this out and developed a marketing campaign around it. Did this guy just wake up? Maybe he noticed the new commercials during NFL.


Constable Odo,

What are you, some kind of shill?  In the two years since Vista was released, Apple has not only gained market share, but has made, according to any number of analysts, some remarkable inroads into the business world, helped along quite nicely by the iPhone.

I work for the Feds, and my Agency was a hardline Windows shop for years.  New top management that has come on since the new Administration has changed that remarkably, in spite of all the IT management could do.  When the Commissioner (or one of the other top managers) says, “I want a Mac”, you don’t point at some outdated memo by a manager that left ten years ago, you buy a Mac and put it on his/her desk!

But that’s ok, if you are so deluded, then maybe top management at Micro$oft is too.  Let Balmer stay in charge as long as it takes!!


Quit joking around.? As long as the old-guard IT manager is around there is zero chance of getting a Mac on a corporate desktop even if Windows 7 was truly crap.?

It is my understanding that more and more businesses are opening up to the idea of non-Microsoft products. True there is some resistance, but never say never.

While I do believe that Microsoft will continue to be one of the major players in business, I also believe Apple is very comfortable with the direction that the Mac OS X is taking them when it comes to business.


That will never change.

Perhaps, but the very same thing was said about the BlackBerry vs iPhone. Notice how that’s worked out.

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