Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:
Apple Delay Is No Big Deal by Mark Veverka
Summary: Despite the fact that veteran analyst Charles Wolf anticipates a $150-200 million revenue boost from the Leopard launch, he's not concerned about Apple's (NASDAQ:AAPL) recent delay of its newest OS release. "The long-term impact will be absolutely zero," he says, though "it might postpone the upgrade cycle by a quarter or so." Apple delayed its development in order to dedicate more resources to its June-slated iPhone release. The news shaved 1.6% off Apple shares Friday morning, to $90.68. "Life often presents tradeoffs," the company said, "and in this case we're sure we've made the right ones." Wolf says Apple can smooth the situation by initiating an upgrade coupon program so that potential computer buyers can have their Mac now, and get Leopard when it's ready; Apple's notoriously easy upgrades should not give buyers reason for pause. The company's fiscal year ends in September, so Wolf has lifted his 2008 profit forecast by $0.10 to $3.85/share.
Related Links: Apple's Ambiguous Leopard Delay - Bad News for iPhone Software? • Goldman: Apple's Leopard Delay the Right Move • Why Apple's Leopard Delay is A-Okay • Is Apple Beginning Its Long Delayed Descent?