Menu
Analysts fear longer than expected G5 delays

Analysts fear longer than expected G5 delays

ANALYSTS from Prudential Equity Group and UBS have warned over the past two days that longer than expected G5 delays from IBM is the near-term "key risk" for Apple Computer. Both firms are concerned the delays could be longer than originally expected.

"Following a series of recent checks on Apple, we believe that availability of the company's 1.8 GHz and 2.0 GHz G5 processors may be worse than initially anticipated," say Prudential analysts. "Apple had previously stated that it expected to have shortages of its 1.8 GHz and 2.0 GHz processors through July, with supply catching up in August. We now believe that IBM may be having difficulty meeting its revised supply commitments."

Even though it appears IBM is dedicating more resources to getting the G5 chips to Apple, customers still may face shortages especially with the anticipated release of a G5 iMac later this month at Apple Expo Paris.

"Powermac shipments should face yield issues into fiscal first quarter 2005 and a new iMac to be launched later this month to strong demand, should be met with shortages," say analysts at UBS.

Prudential did not change its rating on Apple, but cautioned while the "financial impact should be modest, we caution that upside to numbers looks difficult, and in fact, there is potentially some risk of sales/earnings-per-share shortfall. At over 28 times fiscal 2005 operating EPS, the shares look priced for perfection and could get nicked on any unwelcome news."


Follow Us

Join the newsletter!

Or
Error: Please check your email address.

Featured

Slideshows

Data breach notification laws in NZ: How can partners prepare?

Data breach notification laws in NZ: How can partners prepare?

This exclusive Reseller News Roundtable outlined the responsibilities facing security partners today, assessing risk while evaluating the role of the vendor in providing added layers of protection.

Data breach notification laws in NZ: How can partners prepare?
Meet the leading StorageCraft partners across A/NZ

Meet the leading StorageCraft partners across A/NZ

StorageCraft honoured its top performing partners across Australia and New Zealand (A/NZ), recognising channel excellence following a strong year of growth.

Meet the leading StorageCraft partners across A/NZ
Show Comments