Apple Inc (AAPL)

[fmikehugo]

07:10 AAPL Apple Computer: Holiday season checks suggest strong iPod and notebook demand; shares appear fairly valued - TWP (81.52 )

Thomas Weisel notes that they just completed a round of about 20 channel checks with Apple specialist resellers and Apple retail stores across the US and their checks suggest strong "holiday season" demand for Intel-based Macs and iPods. There is no change to their estimates.

They are already estimating 41.5% y/y growth for Mac units, and they remain comfortable with their current estimates. They say iPod demand checks suggested strong enthusiasm for the iPods overall, and they are modeling a 68% sequential increase in units (14.7 mln) for December.

Based on their checks, they remain comfortable with their current iPod estimates, although they believe that some upside to their estimates is possible. They believe the growth opportunities continue to be strong for Apple, but that those opportunities appear to be well understood by the investment community and, thus, reflected in the current stock price.