We believe Apple is having some difficulty building enough to meet demand, but we are not too concerned as we believe this is a good problem to have instead of building too many for no demand.
We view this keynote as a milestone and catalyst as it could set the tone for Apple and technology in 2006.
We believe this would be a successful strategy, given the type of content and markets Apple has had success in.
Both Apple and Creative are doing well and it is not necessarily at the expense of each other. It's not a zero-sum game. This is a good market to be in.
Expectations were getting out of hand. It's good to see Apple trying to reset them.
If you look at the stock price, it's obviously been a darling. Expectations were very high. . . . Apple had to report a flawless quarter. It wasn't flawless.
Apple has offset the gross margin pressure by managing its business better.
Apple is benefiting from a strong back-to-school period where students need a personal computer today, and Macs remain the preferred PC platform for managing documents, music, photos, and videos.
Apple is really turning more into a digital entertainment company than anything.
This is a company that helps shape the vision and direction of the industry. Apple made portable music cool again. For the longest time, it wasn't cool.
It's the law of large numbers. The pace of growth had to come down, but that's still a very large base of users that Apple can sell additional products and services.