Apple Inc (AAPL)

[fmikehugo]

AAPL Apple Computer: Bullish datapoints from recent channel checks - Amtech (77.69 -1.94) -- Update -- 10:23

Amtech notes that their checks with industry and channel sources, including Taiwan ODMs, indicate very strong demand for iPod shuffle and Mac mini. Their checks indicate that the initial 200,000 iPod shuffle units built have sold out and that lead-times appear to be lengthening to 2-4 weeks versus 1-2 weeks. Consistent with their previous checks, they believe production of iPod shuffle could materially increase starting in the month of March, therefore improving lead-times. Their contacts indicate a production ramp to as many as 500,000 units per month, with AAPL having an option to expand capacity in future months. Firm maintains a Buy and tgt of $84, as they believe that the move to digital music is a multi-year trend that AAPL is well-positioned to capitalize on, having arguably the industry's most powerful and complete stack of hardware, software, and service.