Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:
Bill, Steve and You by Mark Veverka
Summary: Plugged In editor Mark Veverka says Apple (NASDAQ:AAPL) is on a roll. At a recent conference, CEO Steve Jobs addressed investors concerns over weak Apple TV sales by calling the project a "hobby," unlike the company's three main business lines: the Mac, iPod and upcoming iPhone. Jobs said Apple's rollout of Intel-based Mac was "a huge thing" and well done, pointing out that Mac sales are growing at a rate three times faster than the industry average. He says notebooks will at some point account for 80-90% of all its PC sales. Of the iPhone, Jobs concedes that other firms will likely copy its hardware design, but they will fail to imitate its trademark software -- and smartphones are just "software wrapped in really wonderful hardware." He promises iPhone will be the best wireless phone, combined with the best music player, the best keyboard, display and mobile internet in the business. And last week, Apple shares were up 3% after the company announced iTunes will begin selling some songs that will work on other players.
Conference call transcript: Apple F2Q07 Earnings Call Transcript