Apple: The angst vs. the reality | Between the Lines | ZDNet.com

Apple: The angst vs. the reality | Between the Lines | ZDNet.com: "It’s open season on Apple these days. The stock is in a tailspin. Worries abound. The iPod market is saturated. The consumer wallet is pinched. It all adds up to an ugly stock chart. But it’s time for a reality check here. Is all this angst really warranted?

Despite the year to date stock chart (right) Apple’s business isn’t exactly limping along. Sure you can worry about the iPhone not selling 10 million units, or iPod profit margins and even whether the MacBook Air is that big of a deal. But what’s the point? Until proven otherwise most of us would love to have Apple’s business.

Here’s a look at the angst and the reality check that goes with it:

The angst: Apple is cutting the price of the iPod shuffle to goose units because growth is slowing. Last week, Apple announced that the 1 GB iPod shuffle will retail for $49, down from $79. Apple will also launch a 2 GB version for $69.

J.P. Morgan analyst Bill Shope wrote in a research note:

With relatively slow unit growth in the holiday quarter and Apple’s price drop, signs point to iPod saturation and some macro sensitivity. Interestingly, in our recent meeting with management the company cited shuffles as a particular weak spot in the December quarter..."

Helge: Motorola had a high with its Razor phones. Nokia's strategy has been to delvier a broad range of products to a global market. It's not only the short term that counts. This is a Marathon running contest.
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