home stereo: Curbed Enthusiasm for Apple Nowhere to be Seen
Thomas Catino
07/10/2006 11:00 AM EST
Last Saturday, the new Apple Store in Stamford, CT opened in the Stamford Town Center amid great fanfare. Hundreds of people lined up outside the store well before its 10 a.m. opening to get the first taste of the “Apple experience.” Security guards were in sight to make sure Apple enthusiasts kept their emotions in check and did not get out of control. Even before its openin, Apple employees held a pep rally inside the store before running outside the store to give high-fives to customer in line.
Though the store offered t-shirt giveaways to the first 1,000 visitors, as well as a Grand Opening Sweepstakes giveaway valued at $2,229 (includes an iMac, iPod nano, printer, camera and camcorder), most came out of curiosity to see the much-anticipated Apple store and test out its wide range of products. Apple literature puts it best when saying that “the hands-on Apple Store experience provides visitors with a chance to test-drive Apple's entire product line including the iPod Hi-Fi, an all-new high-fidelity speaker system that works seamlessly with the iPod to redefine the home stereo system, the fifth generation iPod with its gorgeous 2.5-inch color screen that can display album artwork, photos and video, as well as the iPod nano, the revolutionary full-featured iPod that holds 1,000 songs yet is thinner than a standard #2 pencil.”
Additionally, to entice consumers, the store has a weekly schedule of workshops and other events. However, judging by the crowd of people that flocked to the newest Apple store, the products alone are enough to appeal to consumers and build brand loyalty for Apple that has never been higher. Yet, with all the excitement and buzz created by the launch of new Apple retail stores, Apple Computer (Nasdaq: AAPL) shares have been treading water.
According to a Bloomberg News report, Microsoft (Nasdaq: MSFT) is preparing to roll out a competitor to the market-leading iPod that could reach shelves by the end of the year, building on its Windows Media Player. Even though it is destined to have a difficult time competing with Apple, since the iPod holds about 75% of the U.S. market for digital media players, analysts are concerned that innovation within the digital media player market could jeopardize Apple's top spot. However, within the next few months, Apple is expected to redesign the iPod and make some product enhancements and features, such as designing an iPod cellphone or creating a new video iPod. One last concern that plagues Apple is the recent drop in flash memory prices. Baird analyst Tristan Gerra said that prices of NAND flash memory could forecast that Apple's upcoming 6 Gigabyte and 8 Gigabyte nano iPods may be delayed.
Despite being hit with some bumps in the road, these minor roadblocks are not something to fret over. Apple shares have already been discounted from its 52-week high of $86.40 and at the current beaten down price of $55.55 and with a relatively low price to earnings ratio, are a great value considering the momentum and future mileage of the Apple iPod.
07/10/2006 11:00 AM EST
Last Saturday, the new Apple Store in Stamford, CT opened in the Stamford Town Center amid great fanfare. Hundreds of people lined up outside the store well before its 10 a.m. opening to get the first taste of the “Apple experience.” Security guards were in sight to make sure Apple enthusiasts kept their emotions in check and did not get out of control. Even before its openin, Apple employees held a pep rally inside the store before running outside the store to give high-fives to customer in line.
Though the store offered t-shirt giveaways to the first 1,000 visitors, as well as a Grand Opening Sweepstakes giveaway valued at $2,229 (includes an iMac, iPod nano, printer, camera and camcorder), most came out of curiosity to see the much-anticipated Apple store and test out its wide range of products. Apple literature puts it best when saying that “the hands-on Apple Store experience provides visitors with a chance to test-drive Apple's entire product line including the iPod Hi-Fi, an all-new high-fidelity speaker system that works seamlessly with the iPod to redefine the home stereo system, the fifth generation iPod with its gorgeous 2.5-inch color screen that can display album artwork, photos and video, as well as the iPod nano, the revolutionary full-featured iPod that holds 1,000 songs yet is thinner than a standard #2 pencil.”
Additionally, to entice consumers, the store has a weekly schedule of workshops and other events. However, judging by the crowd of people that flocked to the newest Apple store, the products alone are enough to appeal to consumers and build brand loyalty for Apple that has never been higher. Yet, with all the excitement and buzz created by the launch of new Apple retail stores, Apple Computer (Nasdaq: AAPL) shares have been treading water.
According to a Bloomberg News report, Microsoft (Nasdaq: MSFT) is preparing to roll out a competitor to the market-leading iPod that could reach shelves by the end of the year, building on its Windows Media Player. Even though it is destined to have a difficult time competing with Apple, since the iPod holds about 75% of the U.S. market for digital media players, analysts are concerned that innovation within the digital media player market could jeopardize Apple's top spot. However, within the next few months, Apple is expected to redesign the iPod and make some product enhancements and features, such as designing an iPod cellphone or creating a new video iPod. One last concern that plagues Apple is the recent drop in flash memory prices. Baird analyst Tristan Gerra said that prices of NAND flash memory could forecast that Apple's upcoming 6 Gigabyte and 8 Gigabyte nano iPods may be delayed.
Despite being hit with some bumps in the road, these minor roadblocks are not something to fret over. Apple shares have already been discounted from its 52-week high of $86.40 and at the current beaten down price of $55.55 and with a relatively low price to earnings ratio, are a great value considering the momentum and future mileage of the Apple iPod.
