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Saturday, November 04, 2006

Weekend Edition: Apple: The Mac Will Stall (HPQ)(AAPL)(DELL)

There is a lot of talk now that Apple's growth may be in jeapordy now that there are 60 million iPods and companies like Microsoft and Cingular are entering the portable music device and download business. The solution: sell more Macs. The sales of Apple's computer did move up in the last quarter to 1.6 million. It is an impressive move, off of a small base.

If Apple wants to get a lot more PC share, it has the same problem that iPod competitors have. Someone else has the market, and they will fight to the death to keep their place.

In this case, the someones are HP, Dell, Lenovo, Acer, Toshiba, and Sony.

Dell and HP each have about 16% of the global market according to Gartner. Dell still has 31% of the US market and HP stands at 22%.

Apple has successfully defended its iPod franchise, so far. With the Mac making some strides, Dell, HP, and the other market leaders will add features and probably cut prices.

Apple, a PC share leader? If wishes were horses, all the beggars would ride.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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