Adobe's CS4 Should Give Apple Sales a Boost

Yesterday Adobe (ADBE) announced a new version of its top-notch online design and editing software. Called Creative Suite 4 [CS 4], this much anticipated piece of software should make it easier to integrate dynamic content such as audio, video, and external information feeds, into Web site design.

Adobe pretty much owns this market, having swallowed all the major competitors. And it's a pretty lucrative market, powering Adobe's impressive returns over recent years. For Apple shareholders, CS 4 should be good news. Every new Adobe CS update tends to require additional computing power, forcing the professional designers, artists and others who rely on these projects to buy newer, faster, better computers.

While I don't have the exact breakdown handy, the significant majority of these pro users run on Macs. This is a sticky relationship -- Apple (AAPL) still owns the graphic, filmmaking, and animation worlds. Not surprisingly, the powerful pro machines also tend to have the highest margins for Apple. So any CS upgrade usually creates new demand for Apple's top desktop and laptop machines.

This demand often takes time to kick in, as no one buys a new computer until they have to. But as CS 4 becomes the de facto creative tool in the next two years among the artistic types, Apple should benefit from enhanced sales of its pro lines. Chances are, the numbers crunchers on Wall Street have not been able to factor this in because it tends to be a lumpy adoption process, with a tipping point emerging and then a cascade of CS 4 purchases followed by new machine purchases hitting within a single year.

Bottom line? The iPhone and its residual cash flow may be a strong reason to think not all of Apple's growth is accounted for. But don't forget to factor in what a decent Adobe software upgrade can do for Steve Jobs' numbers.

Disclosure: No positions held

Comments

[jasphoto:]

You missed a HUGE point - CS4 is 64 bit for PC's and NOT for mac's. Those High end people will need to go with Vista 64 to take advantage of extra memory room 64 bit allows above ~4 GB 32 bit limit. Vista 64 can access between 16 & 128gb of ram. I would much rather have access to more RAM then easiy Ipod usage.

2008 Sep 23 09:44 AM

[suec:]

Where have you been? Apple started selling 64bit desktop machines in 2006.

2008 Sep 23 10:58 AM

[JW PhD:]

Yeah, what suec said. Wake up and join us in 2008, jasphoto.

2008 Sep 23 11:33 AM

[iJah420:]

Yeah NO DOUBT! Typical misinformed user. What a dope.

ijah420 says good luck with that Vista 64.

ps. FYI Windoze 7 mobile has been delayed..... What a SHOCKER!!!

2008 Sep 23 12:13 PM

[Winterpool:]

Unfortunately the original commenter is correct (at least partially): Adobe CS4 willl be 64-bit for Windows but not Mac OS X, despite the fact that almost all Intel Macs have 64-bit cpus and Leopard is arguably a 64-bit OS. Adobe attributes this to Apple's switch from Carbon to Cocoa (Adobe was developing its apps in the former). This has been known for months now.

www.macnn.com/articles.../

So, at the application level at least, you won't be able to access 4+ GB of memory in CS4. It's not clear if Adobe will release a 64-bit Mac OS version before CS5.

2008 Sep 23 12:50 PM

[jasphoto:]

WHO doesn't know what they are talking about - Since a few of you don't I'll give links below.

- www.tuaw.com/2008/04/0.../
- blogs.adobe.com/jnack/...
- apple.slashdot.org/art...

Apple dumped their processor for the dreaded Intel
Apple dumped thier "better" OS for Unix based OS X (still only 32 bit 4 gb MAX)
Watch how many use VISTA 64 which does not have the problems of vista 32.

2008 Sep 23 01:31 PM

[iNeal:]

No Apple user is going to switch to Windows. They will wait for Adobe to catch up.

2008 Sep 23 01:47 PM

[KenC:]

I haven't heard alot of good about CS4. Mostly, I've heard it's a minor release.

And, about how it effects Apple. As the original respondent posted, it won't be popular with Mac users as CS4 is not yet 64-bit for the Mac. Mac users will have to wait for CS5. Why?

Apple has been telling developers for a long time to use Cocoa to write their apps. Adobe, has been dragging their feet, which they always do, and was depending upon Carbon, hoping that Apple would write a Carbon 64, allowing them to keep their Carbon code, and make CS4, 64-bit. Apple did not write Carbon 64, and deserve some blame, but they did constantly warn developers not to depend upon it, and that they should be writing their code in Cocoa. Since, Adobe has to rewrite their code in Cocoa, there will be no 64-bit CS4. Users have to wait until CS5.

2008 Sep 23 01:53 PM

[jack dee:]

Ahh the Zealots crapple fanboys once again all jump on the bandwagon trying to shout down reason and common sense.

2008 Sep 23 01:53 PM

[iNeal:]

What does that term "fanboy" even mean? Real men use Windows? Real men only short-sell stocks? Real men don't support the fastest growing computer company on the planet? Don't get it.

2008 Sep 23 03:14 PM

[brewer:]

Fanboy or not, Mac users aren't going to switch to Windoze-land, so you can just get over any 'reasons' like 64 bit in your mind because they will pale in comparison to the agony of 'going windows'. Call me a fanboy if that makes you feel better about using Windows, I understand completely, been there, done that.

2008 Sep 23 03:19 PM

[jmmx:]

You say "... as no one buys a new computer until they have to. "

"have to" is relative. If an artist is spending 30 min extra per day waiting on the computer (that would be about half again to double the average wait for a render), then it is costing the company about $100 everyday to keep the old machine. They can buy a new one in a month and a half. Since the old one will be used by someone else (or possibly sold) the cost is even less. It pays to invest in productivity.

(I figure $200/hour to keep a design engineer, includes: salary, benefits, workspace and equipment, a fraction of the support and management staff necessary to maintain the individual. This is a moderate level designer.)

2008 Sep 23 05:29 PM

[Billy Staples:]

OK...not joining in the argument for obvious reasons, but one thing has always been known to me, but has never been clearer.
The intense rivalry that exists between Apple and PC users.

I'm not blind, I always knew it was going on, I just never realized the intenseness of it.

It reminds me of the early 80's Islanders-Rangers, Yankees - Red Sox, the old Brooklyn Dodgers-Yankees, or was it the NY giants and the Yankees? I'm close, I know but not that old to actually have been there. Lakers-Celtics in the Magic-Larry Byrd Days.

Everyone had an opinion or a side even if they weren't in the game or had a rooting interest. Of course, in marketbonics speak, you root for where your $ is.

This has to be one of the hottest rivalries around, of course of course if we're talking goods, I forgot coke and Pepsi, Budweiser and Old Milwaukee
(OK, just kidding there)

OK, funny, the guy on CNBC just called Erin Burnett, Becky. It seems like you can't mention Warren buffet's anme with out his favorite little CNBC cutie pop up somehow. ( he does have good taste)

Billy Staples thedarksize.com

or for a stock market laugh thedowjokesreport.com

2008 Sep 24 09:54 AM

[mollytjm:]

the intense rivalry has a lot of old history of david vs goliath. apple (david) and microsoft, mainly. apple nearly folded and to survive sold code to microsoft. that code is now known as windows, word, etc... but of course microsoft has never really known how to use it.

people who appreciated Mac OS are just very relieved to be part of a great company that is FINALLY not just the one with top rated products, but one that is also financially secure and gaining global market share for all it's products. please allow us to bask. we've earned it.

that said, we could all do without the name calling. it is possible to be respectful and disagree. let's keep apple's good reputation by acting like the good guys and not alienating possible future customers. thanks.
disclosure...long APPL

2008 Sep 24 10:20 AM

[Jon T:]

Fanboy is the derogatory expression of choice by arrogant, pompous and conceited Apple-haters to describe Mac users.

It doesn't ever make the person using it look good. But good luck to them - they need it more.

2008 Sep 24 10:23 AM

[Tan Choon Yong:]

You are wrong! Lightroom for mac and windows are full 64 bit system applications as the same for CS4 THOUGH THEY NEVER ANNOUNCED but it is settled. Mac and Windows both are using the 64 bit apps. OSX Leopard is a full fledged 64 bit operating system so if you compared it with windows vista you see a significant performance differences. Pls do not bring in unrealistics statistics to prove difference in between mac and windows - these can results in conflicts.

On Sep 23 09:44 AM jasphoto wrote:

> You missed a HUGE point - CS4 is 64 bit for PC's and NOT for mac's.
> Those High end people will need to go with Vista 64 to take advantage
> of extra memory room 64 bit allows above ~4 GB 32 bit limit. Vista
> 64 can access between 16 & 128gb of ram. I would much rather
> have access to more RAM then easiy Ipod usage.

2008 Nov 07 09:16 PM

[jasphoto:]

Tan - sorry but the chips are 64bit but while OS X is built on 64bit it can NOT run 64 bit apps or see more RAM (which negates your whole point). CS4 & Lightroom 2.1 both run in 64bit only under VISTA 64. And from what I see it's real nice - heres a current user discussion - www.flickr.com/groups/...

2008 Nov 26 02:43 PM

[Justin Ross:]

Not only are you opinionated, but you're also inaccurate and uninformed.
- Intel is faster and more efficient in every single benchmark than the IBM chips being used.
- OSX is a 64 bit OS when running on 64 bit capable machines. The adobe cs4 software, however, was only written for macs in 32 bit using the older carbon interface (which is 32 bit only) instead of the newer Cocoa programming interface.
- Vista 64 has had more problems than Vista 32 because of the original lack of driver support. By now, however, most of these types of problems with both versions of Vista have been worked out.

On Sep 23 01:31 PM jasphoto wrote:

> WHO doesn't know what they are talking about - Since a few of you
> don't I'll give links below.
>
> - www.tuaw.com/2008/04/0.../

>
> - blogs.adobe.com/jnack/...
> - apple.slashdot.org/art...;from=rss

>
>
> Apple dumped their processor for the dreaded Intel
> Apple dumped thier "better" OS for Unix based OS X (still only 32
> bit 4 gb MAX)
> Watch how many use VISTA 64 which does not have the problems of vista
> 32.

Feb 20 05:45 PM