Apple Hints at ‘Product Transition’

Apple_iMac_Lineup2.jpg

As was expected, Apple posted significantly higher Q2 earnings, due entirely to the Mac’s ever-increasing market share and the company’s strong iPod sales, as the New York Times reports. The news was largely remarkable for two things:

1) The fact that the increased profit wasn’t because of the iPhone, although part of that was due to shortage of the old version in the run-up to the new model, as we reported yesterday;

2) The fact that Apple’s CIO hinted at a product transition, saying in the conference call that its earnings would be negatively affected going forward: “We have some investments ahead of us that I can’t discuss with you today.”

Rumors about Steve Jobs’ health also persisted, since he appeared thin last month in public and was strangely absent from the conference call yesterday. But we agree with Apple that this particular bit of news is a private matter, even if Wall Street analysts disagree.