Originally published January 22 2006
Research analyst predicts Apple will move away from Macs
by Mike Adams, the Health Ranger, NaturalNews Editor
Goldman Sachs analyst David Bailey believes that Apple will move into the digital-entertainment market, following the lead of the iMac G5, a home entertainment hub. Other analysts believe the company will continue with hardware and software.
A research analyst has predicted that Apple Computer Inc. will continue to transform as a company, and that in 2006 the company likely will move away from its Mac core and build instead on leveraging the success of the iPod.
In his earnings estimate for Apple, Goldman Sachs analyst David Bailey raised his expectations, predicting a strong demand for iPods and anticipating more product announcements in early 2006.
Already, iPods are sold out at many retailers because of the holiday, Bailey noted, and he expects Apple to sell 11.6 million units in its first fiscal quarter of the new year.
Previously, the analyst had predicted 10 million would be sold.
Bailey also anticipates that, in addition to beefing up iPod branding and sales initiatives, Apple will make a major move into the digital-entertainment hub market.
Bailey expects that Apple will make more announcements about new initiatives in the area during the upcoming MacWorld conference in January.
In general, however, Bailey believes Apple will throw the greatest weight behind its iPod.
Although it is likely that Apple will put more emphasis on music and video efforts with its iPods, many analysts believe the company also will continue to keep focus on building hardware and developing software as well.
"Apple has established a level of differentiation through its hardware and software," said Forrester analyst Ted Schadler.
In fact, it's probable that with the Intel switch, there will be more push toward performance, especially with laptops."
With Apple machines due to move to an Intel chip in the next year, analysts expect that there will be strong focus in the company on capitalizing on the chip's strengths.
"Apple's core business is still making and selling hardware," said Schadler.
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