Apple talks of imminent "product transition"

Posted on 26 Jul 2007 at 12:21

Apple has given a firm hint that new products are in the pipeline.

Speaking to analysts in a conference call following the publication of the company's latest financial results, chief financial officer warned that the company's earnings for the current quarter will be much reduced: from the 92 cents per share it reaped in the last three months down to around 65 cents.

This figure was challenged by UBS analyst Ben Reitzes.

"You just guided to 66 cents and came up with 92 cents? Why should I believe it should be 65 cents when you've been so conservative?", he asked.

Oppenheimer gave one clear reason - price cutting "back to school" promotions - but the other explanations he offered were less black and white. On the face of it rising component costs may seem obvious enough, but when that component is flash memory it suggests that Apple may have plans for it beyond iPhones and iPod shuffles and nanos.

A new iPod that employs the widescreen and multitouch technology introduced with the iPhone would likely necessitate a switch from hard drive to flash storage, to reduce power usage and compensate for the additional demands on the battery that a larger screen makes.

That is just speculation. Then we come to Oppenheimer's third reason: "a product transition I can't get into."

Watch this space.

Author: Simon Aughton

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