Apple and CPU
Bill,
I think whether it is a buy signal on CPU or Apple. As a proven bear (though no addicted bear) and in connection with exaggerated expectations about the imac business I initially regarded it as short signal.
I sold some Apple after the IMAC news was out. Talk is that imac story was grossly exaggerated, despite there was a bunch of initial orders, and with the signal to the market "yes, we can do something new and stay in business".
If it was the case, Apple would have seen a better market performance, recently. If it was real good news and better than anticipated and priced in Apple, the stock would have soared. The fact it did not is a weak signal.
For CPU strong imac selling points could mean additional business by attracting people in the shops. Could. The imac sells as a pret-a-porter machine where not much additional goodies are needed to buy.
And, what is the cut for CPU on each imac sales? $20, $50?
imac or not, imho CPU has to fight the change in paradigmas, where litarally everthing is sold over net, online marketeers like Dell are soaring and CPQ jumps the train.
CPU should turn around if they establish themselves as "the computer netgrocer":
Implementing a somewhat more lean cost structure along with a flexible business than relying on immobile, henche inflexible brick mortar shops. In the long run, frequently opening and closing shops (thus posting frequent on-time charges) should be more expensive than running it over the net.
C. |
