Apple Inc (AAPL)

[fmikehugo]

08:59 AAPL Apple Computer: Removing from Focus List; big move in short time, would rather buy on a dip; Zune likely to splinter windows market - AmTech (77.61 ) -Update-

AmTech is removing AAPL from the AmTech Focus List. Since firm added AAPL on September 5, 2006 in conjunction with their analysis of AAPL's significant technical progress in its cell phone efforts, shares have appreciated 15% vs. 3% in the NASDAQ. While firm remains long-term positive, they believe AAPL shares may reflect too much near-term cell phone optimism. Firm would not be surprised to see a near-term pullback and would be aggressive buyers at lower levels (low-$70s, high-$60s).

Firm has learned that the forthcoming Zune portable media player and service will likely use a new proprietary Zune DRM that is incompatible with MSFT's PlaysForSure DRM that MSFT and its OEM "partners" including CREAF, SNDK, SNE, Samsung, iRiver, Archos, etc. Firm believes the unexpected side effect will be further fragmentation in the Windows Media market, creating more confusion to consumers.