Apple, Solid to the Core

Master's of self promotion usually end up on Wall Street. On the Street they can bluster their way to 7-figure compensation packages, but often don't have staying power. And they rarely create anything of lasting value.

Steve Jobs is a master of promoting himself, and his companies. But with an important difference, as he always seems to deliver. He might be a total jerk. But he is our jerk, and he looks like the U.S.'s MVP in the global battle for economic dominance. It is scary to think where Apple would be if Steve did not get distracted with the Pixar gig.

The iPhone was only on sale for 30 hours in the second quarter, but they did sell 270k units. Of course, AT&T only managed to activate half of them. iPod sales were strong in the quarter, up 20% over last year, probably a surprise given some analysts expected sluggish sales as the people deferred purchases due to the iPhone. Cannibalization issues might linger, but early on it looks like much ado about nothing.

But Macintosh sales were the real story.

Mac sales rose 33% to 1.76 million units, perhaps an example of the halo effect at work. Notebook units grew 42% year over year, and are at the highest levels in history.

But we can’t really add much value to this story. With the stock up roughly 75% year to date, growth managers who don’t own this name likely have some explaining to do. Analyst targets are starting to cluster north of the $200 level. Given the momentum, and lack of alternatives, getting to that number does not seem like much of a stretch.

Remarkable, isn’t it?
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The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No position in securities mentioned

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