Apple's warning of earnings shortfall last week just as the stock was trading at an all-time high caught many investors off guard. It will take some time for investors to regain their confidence in the company. Nonetheless Apple's fundamental remain strong. What has changed is that the drop in share price has made AAPL a lot more attractive from a valuation standpoint. 400MHz PowerMac G4s currently being manufactured in Apple's Sacramento facility are starting to reach the distribution channel in quantity.
Demand appears to be quite strong.
With the heavy backlog, both stores sold out of these machines as soon as they arrived. The consumer desktop line, namely the iMac, is expected to be refreshed during this quarter in time for the Christmas season. Sources tell us that Apple's manufacturing facility in Sacramento, as well as LG Electronics factories around the world are already gearing up to produce the new iMac in volume. Let us hope that the product transition for the iMac will be executed more smoothly than for the PowerMac G4. With the PowerMac G4s and iBooks shipping in quantiy, I expect total unit shipment to exceed 1 million units for the quarter ending in December, the first time Apple has managed to achieve this since 1996.