Kasper JadeAfter returning from yesterday's media event in Cupertino, analysts for American Technology Research said they were a bit "underwhelmed" with Apple's product announcements and now believe the company is making less visible progress in building a broader digital entertainment portfolio.
In the analyst's view, the new Mac mini has evolved into a competitive compact entertainment center with faster Intel processors, giving it processing muscle previous PowerPC G4 processors didn't deliver. "In addition, to us it screams connect me to a TV with the inclusion of a remote control, Gigabit Ethernet, Wi-Fi, Bluetooth, DVD burner, enhanced Front Row software with Bonjour file sharing and streaming, and more robust display options (DVI, VGA, S-video and composite video output)," Wu wrote.
He also believes the new Front Row software with Bonjour auto-discovery file sharing capability is further proof of Apple's commitment to leading the industry in ease-of-use. "Bonjour software capability essentially allows iTunes clients to 'auto-discover' one another, making a product like a Mac mini a more powerful entertainment hub," Wu wrote.
However, the analyst finds the dual-core Mac mini's price point of $799 to be a bit steep, and suggest the company add more features in the future including PVR recording and TV-tuner capabilities, which "would arguably make it the most powerful digital entertainment center on the the market. Still, he notes that comparable Windows PCs cost around $900-1400.
Interestingly, Wu said, the new Mac mini is the first Intel Mac to utilize Intel integrated graphics versus the ATI Radeon graphics processor used in the previous Mac mini design. He also points out that the previous PowerPC-based Mac mini appears to have been discontinued — a positive indicator that Apple has tight control of its inventory levels.
Meanwhile, the analyst notes Apple's announcement of the iPod Hi-Fi indicates the company is entering into a product category that's proven to be a hit with customers — the iPod speaker space.
"To minimize disruption, Apple is entering the mid-range segment with the $349 price point versus $99 at the low-end and $1000 at the high-end," he wrote. "The difference with Apple's product is that it is more integrated and focused on delivering quality and bass in a single package."
American Technology Research continues to believe that Apple's fundamentals remain sound and arguably among the strongest in technology. However, the firm notes that negative investor sentiment and the company's "weak technicals" may indicate further drops in share price.
"Absent of technicals, for longer term fundamental investors, we would take advantage of the pull-back to build and/or add to Apple positions," the firm said.
American Technology Research maintains a 'Buy' rating on Apple shares with a price target of $101.
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79 Comments
If this guy is really an analyst why can't he understand that the Mac Mini will never include PVR functionality?
Apple is in the business of selling video and tv content through the iTMS for $1.99 an episode. That is their business model... SELLING CONTENT..
They'd be shooting themselves in the foot and PISSING OFF all of their network content partners if they offered PVR functionality on the mini or any Mac.
It doesn't make sense to sell a computer that will out of the box record television content for free and then expect people to buy that same content from the ITMS for $1.99.
It ain't gonna happen..
Anyone Can be an Analyst:
I think that this quarter will be a bit lackluster despite the Billionth song on itms.
I also believe that this quarter more is going on behind the scenes than We would be led to believe.
With April 1st and the still hoped for but as yet unannounced 30th anniversary event looming, I think that Apple will take that opportunity to Release something that will be groundbreaking.
This event was more about keeping Apple in the eye of the Press and about mindshare than anything else. Two products that are solid and mid priced were released. The mini shows that apple is serious about honing this little gem. Within a very short period of time the mini will evolve into its true calling and that is a direct threat to the Microsoft Media Center.
The mid priced "boombox" is also a solid plant in the lucrative ipod speaker market. Apple has data that would suggest that products like the Bose Soundock are strong sellers. Apple clearly wants a piece of this market. This is well in keeping with apple's strategy in the past. Apple often cannibalizes or copies products that have been demonstrated to work well with its products.
I maintain a Buy rating on Apple (nasdaq AAPL)There, I have stated the obvious and nothing all of you don't already know.
If this guy is really an analyst why can't he understand that the Mac Mini will never include PVR functionality?
Apple is in the business of selling video and tv content through the iTMS for $1.99 an episode. That is their business model... SELLING CONTENT..
They'd be shooting themselves in the foot and PISSING OFF all of their network content partners if they offered PVR functionality on the mini or any Mac.
It doesn't make sense to sell a computer that will out of the box record television content for free and then expect people to buy that same content from the ITMS for $1.99.
It ain't gonna happen..
I agree completely. The PVR part will come from 3rd parties like elgato or even TIVO itself. Only at the very end after itms has evolved significantly from its current state will we see pvr capability and I think that the PVR capability will occur WITHIN itms very much like podcasts are handled now via a subscription.
So, Buy a whole season of lost $30 then 5 minutes after the airing on regular TV you would see the episode download to your mini automagically.
I can't believe all this fuss over the graphics capabilities. Do you really think that Joe Public, in the market for a cheap PC, cares a jot about integrated graphics versus a graphics card? Or that anyone who wants to use this as a web browser, emailer, word processor, or (gasp!) a media player will care? Only game players should care - because nobody else is affected, at all. And who buys a mac mini to play hard core Doom?
Look it is a $599 PC, with a remote control, 4 USB ports, wireless, bluetooth, firewire, digital audio in/out, iLife, Front Row, can access 64MB of DDR2 RAM for video, wirelessly streams video/music, photos around the house with zero configuration, and handles all of Tiger's requirements and HD video. What else does it need to do? Good lord! Get a grip!
As for the PVR functionality, just add an Elgato and it'll do everything you want.
Some people really want blood for $599 don't they...
Apple is in the business of selling video and tv content through the iTMS for $1.99 an episode. That is their business model... SELLING CONTENT..
They'd be shooting themselves in the foot and PISSING OFF all of their network content partners if they offered PVR functionality on the mini or any Mac.
It doesn't make sense to sell a computer that will out of the box record television content for free and then expect people to buy that same content from the ITMS for $1.99.
It ain't gonna happen..
uuuuh...do they make profit from iTMS? No. Where does Apple's money come from? Hardware. Stuff that PLAYS content. Macs and iPods.
What will sell Mac minis?
PVR.
What will the next Mac mini have?
PVR.
IF it doesn't?
Someone will make the software and/or hardware. And therefore it will cost us more, but we'll still buy it. Why? Because it will be the best solution on the market. Just like the Mac is the best computer on the market and the iPod is the best music player on the market.