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Will Apple's Back-to-School Season Be a Disaster?

Posted Aug 08, 2008 09:02am EDT by Sarah Lacy in Investing, Computers, Products and Trends, Recession
It's early in the back-to-school shopping season, but blogger and strategist Paul Kedrosky gives Apple low marks. Early numbers show electronics buying is off in an already slow season -- a big reversal from retail trends during the last few years. The slowdown already has hit Sony and will likely spread to Dell, Hewlett Packard and others, Kedrosky says. But the player he's really worrying about is the almighty Apple.

78 Comments

Earth Invader
Earth Invader - Friday August 08, 2008 09:24AM EDT

Don't worry, be happy.

raffaele
raffaele - Friday August 08, 2008 09:25AM EDT

The sun will shine someday for the U.S.A.

pegger
pegger - Friday August 08, 2008 09:44AM EDT

Dont think I like this site. Seems to attract a lot of angry people

you
Yahoo! Finance User - Friday August 08, 2008 10:06AM EDT

What a load of BS. Where are the numbers? No numbers, Hmm can you say FUD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

you
Yahoo! Finance User - Friday August 08, 2008 10:14AM EDT

Have you stepped into an Apple store once, twice, ever ??? Instead of looking like a retard, why don't you do that, then come back to me.

you
Yahoo! Finance User - Friday August 08, 2008 10:25AM EDT

Yea, where's the actual facts? Every industry tracking report, every survey, and Apple's own earnings report less than a month old show strong market share growth for Apple despite the economic conditions. As a matter of fact, these same reports of actual facts show the whole industry continues to grow nicely and Apple to grow faster than the industry by about a factor of three. Did it all of a sudden crash to a stop in the last two weeks? No proof offered here, just conjecture. The trend is the other way though and I doubt it will stop any time soon.

Brad
Brad - Friday August 08, 2008 10:35AM EDT

This is irresponsible journalism at its worst. Mr. Kedrosky cites not a shred of concrete evidence to support his speculative thesis that Apple's back-to-school sales are taking a hit.

you
Yahoo! Finance User - Friday August 08, 2008 10:37AM EDT

Next he will probably take great joy in spreading the fear of dying from cancer into every young school child he can reach just for the sheer joy of it...... would be his idea of giving them his shiny apple and a way to re-enforce his twisted own self view of himself.

Roberto
Roberto - Friday August 08, 2008 10:39AM EDT

Have you ever try and Imac ?

you
Yahoo! Finance User - Friday August 08, 2008 10:43AM EDT

Why so many bitter Apple people?

Bill
Bill - Friday August 08, 2008 10:46AM EDT

Has this guy been in an Apple store lately? I was at the Roosevelt Field Mall last night at 9:30 PM. The mall was pretty empty except for the Apple store. It was packed with people buying computers - mostly laptops. Please don't buy stock based on my anecdotal evidence. But please don't sell stock based on this turkey's report based on conjecture and hot air either.

the joec
the joec - Friday August 08, 2008 10:46AM EDT

This guy just wants to be on TV. Apple has consistently beats sales estimates from PRO- apple analysts, let alone media hound protagonists. Early numbers show the iPhone is selling well and the portable products are thru the roof. Apple is expected to release updated portables for the back to school season which will only increase demand and if they decide to refresh the iPod line then you will see better than expected numbers there also. I challenge Yahoo finance to do a follow-up interview with this "yahoo" after the Back to School season. I have a feeling he will look about as smart as Micheal Dell with his now infamous quote regarding Apple back in 1997 "I'd shut it down and give the money back to the shareholders".

davids
davids - Friday August 08, 2008 11:06AM EDT

Walk into an Apple store instead of your guess. Parents like myself are buying computes for our children and they all want Apple Macs. To compare with Sony is boneheaded, no product overlap.

Willy
Willy - Friday August 08, 2008 11:13AM EDT

They don't know what they are talking about. It seems like every time i went to Apple store, i saw the store was always crowd with people and i saw a lot of people carried out bags of goodies. Was i delusional????? Was i dreaming???? Someone please wake me up.......nope

BIGZGUS101
BIGZGUS101 - Friday August 08, 2008 11:13AM EDT

Well, Apple is the next one? Why? Because limited connections have left them once again a piece of market share. While I like them they needed connections with the one and only. Now their future is dictated by the one and only. "One and only" is only a figment of the past. Welcome to reality "Apple" buyers. You bought "overforecasted evidence". Now it is time for your one "world" fantasy....

Russell
Russell - Friday August 08, 2008 11:56AM EDT

I can understand why they are concerned. Quite frankly, It's a bit disappointing that Apple's big promotion and push to "Back-to-Schoolers" is that you get a free iPod with a purchase of a MAC. Furthermore, the price of their cheapest laptop is significantly more than an equally equipped PC. We know that Apple is great and they can charge for their greatness, but they should've lowered prices, at a minimum before the back to school season started. The only computer in their lineup to be price adjusted recently is the Air, which I suspect will not get the interest from the back to school crowd due to it's lack of power, storage and optical drive. Just my opinion.

- Friday August 08, 2008 11:18AM EDT

Kedrosky the clown and his dim whitted sidekick -- a typical pair on which Yahoo loves to waste bandwith. This only proves that anyone can find a place on Yahoo video -- regardless of ones lack of credentials or common sense. Kedrosky -- try walking into an Apple store before spouting your inane twaddle.

MattM
MattM - Friday August 08, 2008 12:00PM EDT

Apple is a product that says "I have a little more money than you?" What an idiot. And he doesn't have any real hard data about Apple sales. He's just speculating on general credit card sales. But hey, there is a reason why Yahoo reports this crap with no merit. They know it will generate hits. And I can't wait to email Paul in October once he's proven wrong....again.

Joe
Joe - Friday August 08, 2008 11:25AM EDT

Apple schmapple, it's an overpriced computer. Where is the value in that? You freaking apple fanatic morons will eventually figure out it's just another product made by another company. The apple execs & marketing team have really hit a homerun with all you freaks who are so easily influenced by what you perceive as "cool" and gush about it like it's your girlfriend. In fact, most of you apple heads would probably rather play with your Mac than your girlfriend, freaks! LOL

you
Yahoo! Finance User - Friday August 08, 2008 12:02PM EDT

Will Apple's Back-to-School Season Be a Disaster? It's just a question. It doesn't say Apple's season will be a disaster. Apple recently has been doing better sales than most computer companies. In this economy, I expect Apple to sell fewer computers than they could in a great economy, but hardly a disaster. I'm sure lots of people will be buying those cheaper model Dells and Acers, but with educational discounts and free iPods, Apple should still get plenty of back-to-school sales. I wonder if PC users can still purchase those cheaper PCs and run Vista well. That could be a major problem for them. I don't think this is a bad article for Apple. It's a simple question that anyone might ask. There is some correlation to unit cost and how much money people are willing to spend, but it isn't an iron-clad rule. I believe Apple will fare above average, but not have blow-out sales of notebooks and iMacs.

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