Apple offerings fail to wow investors
Posted by admin
There was no thunderous iPhone-like announcement in sight as Apple Corp. unveiled a new ultra-slim laptop and online movie rental service at its annual MacWorld conference product announcement yesterday that underwhelmed analysts who have grown to expect much more from the innovative company.Every January, technology aficionados await with bated breath to learn from chief executive and unofficial company guru Steve Jobs what will be the next product offerings from the design-conscious technology firm. Last year, they were rewarded with the revolutionary iPhone.This year, analysts say Apple missed the mark by simply offering upgrades to existing products that at best would only continue to showcase how diverse the company has become.”Everything was more evolutionary than revolutionary,” said Yankee Group analyst Josh Martin.The highlight of the San Francisco-based conference was the MacBook Air, reported to be the thinnest laptop in the world that ships with a thickness of less than one inch. The laptop comes with a US$1,799 price tag, an aggressive amount that still may be out of the price range for cost-conscious consumers as Dell and HP continue to undercut Apple with similar offerings from Dell and HP at deeply discounted prices.”I was surprised they didn’t revamp the MacBook line to appeal to people who are still on the fence deciding if they’re going to buy a Mac or if they’re going to buy a PC,” added Mr. Martin.Prior to that, Mr. Jobs announced the launch of a movie rental service through Apple’s iTunes media player which saw the company partner with every major film studio consumers downloadable or streaming movies within a 24-hour window. But Apple’s focus into the living room may still encounter a number of obstacles, such as a saturated market and cheaper downloads like Amazon’s UnBox service. Furthermore, the service is only available in the U.S. with no Canadian launch date in sight.Also, in a move that may rankle Canadians that have already purchased an iPod Touch, Apple also said that applications that were previously only available on the iPhone such as e-mail and stock checking programs would be available to Touch users for US$20.Investors weren’t kind to Apple’s latest offerings. After a year that has seen Apple become the darling of Wall Street with a stock price that hasnearly doubled since the last MacWorld conference, investors drove the company’s shares down more than 5% to close on the Nasdaq at US$169.04 and another 3% in after-hours trading.Still, RBC Capital Markets analyst Mike Abramsky remains bullish on Apple, adding that the company continues to sell iPhones and its new operating system at a feverish pace.”It’s dangerous to underestimate the company because it’s obvious they’re not going to stop there,” said Mr. Abramsky, who maintains an ‘outperform” rating. “[Apple] is becoming a much more prominent player in the world of computer and media.”
Tags: amazon, chief executive, investors, iphone, iphones, ipod touch, launch, macbook
Leave a Reply