With PC sales in an ongoing slump, and iPods flying out the doors, Apple may move its whole operation further toward the portable media player. In a note to clients yesterday, accompanying an upside revision of his earnings estimates, Goldman Sachs analyst David Bailey said:
2006 will undoubtedly mark another major year in Apple's transformation, but its new markets bring together tougher competition... If early indications from suppliers prove correct, Apple is likely to move further from its Mac core in 2006, leveraging its brand and building on the consumer success of iPod.
● Mac sales accounted for fully 50% of Apple's revenue last quarter
● The Power Mac G5 and Mac notebooks are selling relatively well and remain best-of-class
● Even when Apple was losing money a few years back, it continued to develop the Mac
● The move to adopt Intel processors seems to indicate a long-term commitment to PCs
So whatever strategic changes Apple may have in mind, it would appear more likely that Jobs et al. will simply pour more resources into the iPod unit, without necessarily neglecting the Mac one bit.