Opinion on  Apple Computer Inc (AAPL)     Sector: Technology  >  Industry: Computer Hardware
Translating the Latest Spin at Apple

In my days, I've seen spin. The Apple (aapl) spin on the Leopard delay takes the cake.

Let's take them one at a time: "iPhone has already passed several of its required certification tests and is scheduled to ship in late June as planned..." Translation: There are plenty of other tests it hasn't passed.

"However, iPhone contains the most sophisticated software ever shipped on a mobile device, and finishing it on time has not come without a price, and finishing it on time has not come without a price..." Translation: iPhone has hit snags and is deeply behind schedule. It was introduced ridiculously prematurely to boost the stock and take eyes away from the slowdown in iPod.

"...we had to borrow some key software engineering and QA resources from our Mac OSX team, and a result we will not be able to release Leopard at our Worldwide Developers Conference in early June as planned." Translation: Make no mistake about it: Apple's future and stock depend far more on the success on the iPhone and other devices than computers. When it comes to the stock, nobody cares about Leopard any more than they cared about Vista at Microsoft.

I've got to hand it to Apple (aapl), cool factor, aside: With the latest offerings, this much is clear -- Apple's product offerings are getting more confusing, not less. Trying to remember which product sold at which price with which memory yesterday and what it sells at today is like trying to keep track of which shell is hiding the pea.

The big change, aside from sharply lower prices for the iPhone, is the the intro of the iPod touch, which is likely to get wide acclaim. However, this is really little more than the iPhone without the phone -- in other words, the best part of the iPhone for a hundred or two hundred dollars less than the iPhone; a few thousand dollars, less, if you include the total cost of the contract required with the phone. "So," emails one money manager who has long been dubious of the hype surrounding Apple, "who in their right mind would want an iPhone when you can get this? If I was AT&T/Cinglular I would be furious. Heck, if I bought an iPhone I would be furious because  I just paid $2,000 [including the contract] for a ...phone when I can get this thing for $299 and keep my old cell phone...I wonder how many sudden iPhone returns they start getting now...talk about buyer's remorse."

As for Apple's stock: I've learned not to go anywhere near that subject. Cult stocks have minds of their own, and this one is likely to continue to create buzz as long as it rolls out new products and as long as its stores are packed which, for now, they are. (At least in San Diego.)

With its offer of a $100 store credit to existing iPhone customers, Apple (aapl) didn't waste time realizing and admitting its mistake in cutting the price of the iPhone so soon after its roll out. As I pointed out here in my prior blog item, yesterday, it would be understandable if early iPhone buyers got a sudden case of buyer's remorse. To Apple's credit, it moved swiftly to resolve the possible hit its image was about to take. Still, cutting prices on the iPhone, at this point in its cycle, clearly
appears to have been a poorly thought out decision by a company the
appears to be falling into the trap of believing its own press
clippings. If nothing else, the price cut shows how even Apple, for all of its creativity and the good that it has done, can stumble. That's something Apple investors might want to keep in mind going forward.