The point is that Apple's P/E is way to generous given the past record of the company and its prospects for the future. This is particulary true when you realize that when Apple changes over to Intel CPUs, every users' software that now runs on OS X will only run in emulation mode on a Mac Intel CPU based computer. (Anyone remember the last time this happened? It was when OS X was first released. It came with OS 9. If you had software that ran on this version, you had to boot to OS 9 to run it!)
Talk about giving Jobs a free ride. If Microsoft had pulled the above stunt, not once but now twice, the tech press would have screamed at that the top of their lungs foul.
Meanwhile, what are the prospects that sales of Macs up until the change over will be dismall at best? I think better than even. Meanwhile, iPod sales have peaked. This stock is a great short candidate.
By the way, because some of our customers (less than 5%) use Macs to get our sites, we had to purchase an Apple. We test our web code on it to ensure compatibility. We chose an iMac G5 with a 17" LCD screen running Panther. What a dog!!! Additionally, besides only having a one button mouse, the screen is 2/3 the size of a normal 17" LCD screen. While as wide as a normal screen, it is only 2/3 as long. Everything on the screen is scrunched. Since this model has everything built around the screen, I guess they had to make room for the computer guts, but what a rip off. Oh! It cost exactly twice the amount we pay Dell for their Optiplex GX280s and a 17" LCD screen.
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