Hi Matthew,
The downward price is due mostly to the ongoing NASDAQ correction, which IMO started over worries about the pc channel. This does have an indirect effect on Apple as the company does still compete in many ways with Dell, Compaq, etc. Of course as pc parts suppliers come under pressure, Apple is also able to make a box more cheaply.
Anyway, I think this pressure could continue for a few weeks as we start to come into preannouncement season. People are wondering if Gateway will come out early with a warning and I think I saw something on thestreet.com where Compaq is hinting it may not make a profit this quarter either. Intel is obviously breaking down as well.
However, if the highest end PowerBooks hit the channel soon we may seen a rise in AAPL, as the recent slide might also be partially due to worries about the quarter.
But don't worry too much because the stock really just has to hold $24-25 until the beginning of July, at which point interest will perk up due to the summer MacWorld show. Then that momentum should be more sustainable, as quarterly profits are reported in mid-July.
I think you'll see thirties again by that point.
Marc |
